Jersey’s AA+ credit rating confirmed

Tuesday 27 May 2014

Jersey’s international credit rating has been rated as one of the best that the credit ratings service awards.

Standard & Poors (S&P) has affirmed the Island’s AA+/A-1+ long- and short-term sovereign credit rating, with a stable outlook for the States of Jersey. Treasury Philip Ozouf, said confirmation of such high quality rating was extremely positive news.

“The rating demonstrates that our prudent approach to financial management has set us on the right course and we will look closely at the potential to raise the rating even further in future,” he said.

And, he added, it was a key to Jersey’s ability to secure the best possible outcome with the forthcoming Sterling Rated Bond issuance to finance future housing needs.

In its report, S&P noted: “The ratings on Jersey reflect our view of its high wealth, strong fiscal flexibility, and public-policy stability.”

The report also stated: “Broad community and political support for prudent fiscal policies have resulted in balanced budgets on average over the past ten years. The government has also accumulated substantial financial assets that can be drawn-down to support growth during more difficult economic times, such as in the past five years.”

The AA+ credit rating was first assigned in November 2013 in order that the States were able to proceed with the borrowing proposed in the Island’s 2014 Budget for £250 million investment in housing over the next ten years.