S&P Lifts Jamaica to ‘BB’ as Decade of Primary Surpluses Pays Off

KINGSTON, Jamaica — Jamaica has moved one step closer to investment-grade status after Standard & Poor’s upgraded the country’s long-term sovereign credit ratings in both foreign and local currency from ‘BB-‘ to ‘BB’.

The ratings agency announced the decision on September 25 and kept its outlook on Jamaica at positive, signalling that a further upgrade remains possible if current trends hold. The Jamaica Information Service reported the move the following day.

A record few countries can match

S&P tied the upgrade to what it described as steadily stronger institutions and policy frameworks, supported by broad agreement across the political divide that debt reduction should remain a national priority. The agency noted that Jamaica has absorbed a series of heavy shocks, including the pandemic and a run of climate-related disasters, without abandoning its fiscal targets.

One statistic stands out. Of the 141 sovereigns S&P rates, Jamaica is the only one to have posted an annual primary surplus above 3.0 per cent of gross domestic product for ten consecutive years. The country’s law sets a goal of bringing debt to 60 per cent of GDP or lower by March 2028.

The positive outlook, S&P said, reflects its expectation that continued surpluses will allow the Government to hit its debt targets ahead of schedule, with the debt burden continuing to fall.

Government welcomes the decision

Finance and Public Service Minister Fayval Williams described the upgrade as a very positive development and said it brings Jamaica closer to clearing the bar for an investment-grade rating, a milestone the island has never reached.

The announcement comes days after a new Cabinet was sworn in following the general election, giving the incoming administration an early endorsement of the economic course it has pledged to maintain.

What it means for property

A better sovereign rating generally lowers the cost at which the Government and large local institutions can borrow, and over time that can feed through to cheaper long-term funding for banks and building societies. For homebuyers, the effect on mortgage rates is gradual rather than immediate, but a steadier macroeconomic outlook supports a more stable Jamaican dollar and greater lender confidence. Investors and diaspora buyers weighing Jamaican real estate will also see the upgrade as a signal that the country’s economic fundamentals continue to improve.