Copyright trinidadexpress
Even with a negative outlook, S&P Global Ratings maintains that Trinidad and Tobago remains a trusted destination for international investors, Finance Minister Davendranath Tancoo said yesterday. “For the moment, let us rejoice in being able to enjoy investment grade status, knowing that with committed, decisive actions, we will continue to do so for a long time to come,” Tancoo said. He made the remarks as he urged citizens not to give in to fearmongering after S&P’s decision to revise Trinidad and Tobago’s outlook from stable to negative, warning that the country’s credit rating could be downgraded as early as next year. “Fearmongering in Trinidad and Tobago is a favourite pastime of PNM puppets and puppeteers. And it is no different with the latest ratings action from Standard & Poor’s, the international credit ratings agency. We have all been conditioned to think and expect the worst, when a more dispassionately objective assessment would better serve everyone. Let’s try to understand what this means,” Tancoo said. He explained that the S&P rating scale is a widely recognised system for evaluating the creditworthiness of government debt, including bonds and other financial obligations. “By assigning ratings that range from AAA to D, the S&P rating scale helps investors make informed decisions about the risk level of investments. S&P is an internationally respected agency and would have undertaken a rigorous assessment exercise ahead of its rating action. Trinidad and Tobago’s rating of BBB- was upheld, demonstrating that we continue to enjoy investment grade status,” he stated. “It is an enviable benchmark of quality and reliability. It means we have a strong ability to meet financial commitments, with low risk of default, making us desirable to investors. “Meanwhile, the outlook has been revised from ‘stable’ to ‘negative’, signalling shortfalls that, if not addressed, could lead to problems in the future,” Tancoo said. Tancoo acknowledged that citizens might feel some unease but said there was no reason to panic. He said if the country were still governed by a PNM administration, we would likely have been downgraded. “That outlook is based on data from recent years, not our first weeks in office, and it underscores why our agenda to restore fiscal discipline, diversify the economy, and rebuild investor confidence is urgent and necessary,” Tancoo stated. He added that the new United National Congress Government was committed to improving fiscal sustainability, boosting long-term GDP growth prospects, and sustaining the country’s external profile. “This new Government is committed to all of the above, and is especially keen on diversification, the pivot around which everything else in its manifesto revolves. Policies are already well in train to develop new revenue streams from which citizens can benefit,” he said. Tancoo said that the upcoming national budget would contain critical measures to support this agenda, strengthen fiscal discipline, and overcome hurdles impeding long-term growth. “With the 2026 budget as its launchpad for reforms and new growth initiatives, the Government’s priority now is not only returning the country to a stable outlook, but building a stronger, more sustainable economy for future generations,” Tancoo said.
