Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the assigned ratings of CariBBB+ (Foreign and Local Currency) to the notional debt of USD 25 million of the Government of Anguilla (GoA). These ratings include a significant uplift for the high likelihood of support from the United Kingdom (UK). The notched-up regional scale ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean is adequate.

CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is based on: (1) the strong received and still forthcoming recovery support from the international community and development partners, (2) the anticipated high economic growth, largely emanating from tourism and post-hurricane reconstruction, and (3) fiscal revenues remain comfortable to meet debt repayment.

The ratings continue to be supported by the country’s status as an Overseas Territory and as such, CariCRIS believes there is a strong moral and possibly legal incentive for the UK to assist Anguilla in the event of a financial crisis. Additionally, recovery efforts advance with continued support from the international community and development partners. Furthermore, fiscal performance remains carefully managed post-hurricane, with continued improvement budgeted in 2019. Constraining the ratings, however, is the small size of the country, characterised by significant capacity constraints, which were exacerbated by the hurricane. Also constraining the ratings, is the Territory’s continued breach of its debt management performance benchmarks and increased debt servicing requirements.

Anguilla is the most northerly of the Leeward Islands in the Eastern Caribbean. Apart from the main island of Anguilla itself, which is sixteen (16) miles long and a maximum of three (3) miles wide, the territory includes a number of smaller uninhabited islands and cays. The island is noted for its spectacular and ecologically important coral reefs. Anguilla is an internally self-governing Overseas Territory of the United Kingdom with a ministerial system of government. The 1982 Constitution (amended in 1990) provides for a Governor, an Executive Council and a House of Assembly. The Governor, His Excellency Mr. Tim Foy, is responsible for external affairs, offshore finance, defence and internal security (including the police force) and the public service.

Construction and tourism are the main sources of economic growth. Construction activity is driven by private sector investment in hotel development. Anguilla’s economy is highly vulnerable to downturns in the global economy, high international oil prices and unfavourable weather conditions.

For more information on GoA’s ratings, please visit www.caricris.com or contact:

André Joseph                                                Stefan Fortuné

Senior Manager, Ratings             OR         Manager, Ratings, Research and Training

Tel: 868-627-8879  ext. 224                       Tel: 868-627-8879 ext. 228

The Government of St. Vincent and the Grenadines (GoSVG) proposes to auction $20 million dollars, with an option of an additional $5 million in Amortize Treasury Bonds on the 12^th September, 2019, on the Regional Government Securities Market (RGSM). The coupon interest rate payable is 7.0 percent payable every six (6) months, along with principal repayment.

• The minimum bid quantity is $5,000.00.
• Yields WILL NOT be subject to any tax, duty or levy of the participating Government of the Eastern Caribbean Currency Union (ECCU)
• In May 2018 Moody’s Investor Services maintained the Government of St. Vincent and the Grenadines outlook at stable and affirmed the rating of B3.

July 9, 2019

CariCRIS reaffirms its credit ratings for

The Government of the Commonwealth of Dominica

CariBB (Regional Scale Foreign Currency)

CariBB (Regional Scale Local Currency)

Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed its ratings of CariBB (Foreign and Local Currency Ratings) to the US $25 million (notional) debt issue of the Government of the Commonwealth of Dominica (GOCD). These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is below average.

CariCRIS has also maintained a stable outlook on the ratings. The stable outlook is based on our expectation that there will be continued growth in the economy over the next 12 to 15 months given the ongoing reconstruction efforts and restoration of productive capacity among the key sectors of the economy. Furthermore, CariCRIS expects that there will be continued prudential control by the Government over its fiscal operations considering the volatility of both CBI revenues and grant funding. Fiscal revenue is still expected to be sufficient to make debt repayments and Dominica is expected to remain one of the least indebted Caribbean countries.

GOCD’s ratings reflect the country’s significant capacity constraints and weak financial system which were exacerbated following the passage of Hurricane Maria. The ratings also reflect the GOCD’s reliance on CBI and grant funding, leading to uncertainty and volatility in fiscal performance. The factors supporting the ratings include continued satisfactory debt servicing capability, the ongoing recovery efforts with the support from

the international community, as well as the country’s stable political environment.

ABOUT THE SOVEREIGN

Dominica is an island located in the Eastern Caribbean with a total population estimated at 73,000 persons. The official language is English but French patois is also spoken. The primary economic sectors are agriculture, government services and wholesale and retail trade. Dominica is mountainous and volcanic with tropical rainforest covering two thirds of the island.

On September 19, 2017, Dominica was hit by Hurricane Maria, the 2nd major natural disaster in the past 2 years, the previous being Tropical Storm Erika in August 2015. The hurricane caused significant loss and destruction, with 100% of the plant and infrastructure of the agriculture industry damaged and an estimated 95% of the tourism industry also heavily impaired. The assessed economic impact and rehabilitation plans for the island were estimated at the equivalent of 226% of the 2016 GDP or over US $1.3 billion. Post the occurrence of Hurricane Maria, CariCRIS placed the Government of the Commonwealth of Dominica (GOCD) on Rating Watch – Developing.

5 March 2019, Basseterre, St Kitts and Nevis – Member governments of the Eastern Caribbean Currency Union (ECCU) raised $1.3 billion on the Regional Government Securities Market (RGSM) in 2018 representing a 4.4 per cent increase over 2017.

The increase was due to the growing number of ECCU residents who are investing on the RGSM as an option for increasing their interest income and diversifying their asset portfolios. 

The number of bids by households grew by 10.0 per cent in 2018 to 263.  The value of private bids by businesses increased by 38.8 per cent to $20 million as business and community engagement continued to improve.

During 2018, five member governments offered securities on the RGSM: Saint Lucia, which offered $510 million; St Vincent and the Grenadines - $333 million; Antigua and Barbuda - $255 million; Grenada - $125 million; and the Commonwealth of Dominica - $80 million. The maturity of the securities ranged from three months to 10 years, with interest rates from 
2.534 per cent to 7.303 per cent.

The Regional Debt Coordinating Committee (RDCC), which serves as the oversight body for the RGSM, has endorsed the launch of a new web portal to serve as a one-stop shop for information on the RGSM. The web portal is designed to enhance awareness of the RGSM; improve disclosure to market participants; and increase the investor base for government securities. It will be hosted on the ECCB website and will be launched in March.

The RDCC, which met on 1 March, comprises senior officials from the Ministry of Finance of the eight member governments of the ECCU and the Governor of the Eastern Caribbean Central Bank.

Members of the RDCC

Anguilla, Dr Aidan Harrigan, Permanent Secretary

Antigua and Barbuda, Whitfield Harris, Financial Secretary

Commonwealth of Dominica, Rosamund Edwards, Financial Secretary

Grenada, Ophelia Wells-Cornwall, Acting Permanent Secretary

Montserrat, Colin Owen, Financial Secretary

St Kitts and Nevis, Hilary Hazel, Financial Secretary

Saint Lucia, Cointha Thomas, Permanent Secretary

St Vincent and the Grenadines, Edmond Jackson, Director General

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About the Eastern Caribbean Central Bank

The Eastern Caribbean Central Bank (ECCB) was established in October 1983. The ECCB is the Monetary Authority for: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines.

Media Contact: Ingrid O’Loughlin, Senior Director, Corporate Relations Department

Phone: (869) 465-2537 | Fax: (869) 465-9562