Tobago businesses say they are concerned about the Tobago House of Assembly now having the ability to borrow money on the international market, and cannot endorse it.
That’s the word from Diane Hadad, of the Tobago arm of the T&T Chamber of Industry and Commerce.
During the recent presentation of the 2020 Budget, Finance Minister Colm Imbert announced that the Tobago House of Assembly would now have the ability to raise financing for Tobago development projects via bonds worth some US$300 million.
Moody’s Investments has noted a narrowing fiscal deficit credited to Government of Trinidad and Tobago’s restraint and an increase in energy and non-energy tax revenue following the mid-year review.
It also projects an Energy Sector-led rebound in growth to support the fiscal trajectory.
International credit rating firm, Moody's has downgraded Trinidad and Tobago, saying the policy response by the Government was insufficient to impact low energy prices.
Moody's downgrade was announced via a statement from its New York office.
Moody's gives T&T a 'stable' outlook.
"Moody's Investors Service ("Moody's") has today downgraded Trinidad and Tobago's issuer and senior unsecured debt ratings to Ba1 from Baa3 and assigned a stable outlook.
The rating action was based on the following key drivers:
The credit-rating agency, Moody’s, has described last month’s decision by Cabinet to draw down US$251 million from T&T’s Heritage and Stabilisation Fund (HSF) to finance part of the capital expenditure in the 2017 budget, as “credit negative because it reflects a deteriorating fiscal position driven by large fiscal deficits amid lower energy-related government revenues.”
International cedit rating agency, Moody's, has downgraded Trinidad and Tobago's ratings once more, with a negative outlook.
The announcement was made in a statement today.
Moody's says the Government's policies in response to the oil and gas prices, are unlikely to have any timely effects because of weak execution.
It expects the country to be faced with low oil prices through 2018.
The following is Moody's full statement: