Latest News
CariCRIS Reaffirms “Adequate Creditworthiness” Ratings for the Government of Anguilla

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…

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CariCRIS Reaffirms “Adequate Creditworthiness” Ratings for the Government of Anguilla

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

E-mail: ajoseph@caricris.com                   E-mail: sfortune@caricris.com  

Latest News
Government of St. Vincent and the Grenadines Investor Notice

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 12th September, 2019, on the Regional Government Securities Market (RGSM). The coupon interest rate payable is 7.0 percent payable every…

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Latest News
CariCRIS Credit Rating

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…

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CariCRIS Credit Rating

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.

 

For more information on the ratings of the Government of the Commonwealth of Dominica, please visit www.caricris.com or contact:

Note

This press release is transmitted to you for the sole purpose of dissemination through your agency/newspaper/magazine. You may use this press release in full or in part without changing the meaning or context thereof, but with due credit to CariCRIS. CariCRIS has the sole right of distribution of its press releases, for consideration or otherwise, through any media, including websites, portals, etc.

Latest News
ECCU Residents Diversify Financial Assets through Investments in Government Securities

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…

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ECCU Residents Diversify Financial Assets through Investments in Government Securities

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

E-mail: info@eccb-centralbank.org | Website: www.eccb-centralbank.org

 

 

Latest News
Grenada Attracts 1.75% Yield on the RGSM

 
Wednesday, June 19, 2019 10:07 PM- George's, Grenada

GOVERNMENT OF GRENADA, 18th June 2019: Grenada continues to attract very low yields on its short term debt instruments with the latest auction of a 91-day Treasury bill on the Regional Government Securities Market (RGSM) yielding an interest rate below 1.80…

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Grenada Attracts 1.75% Yield on the RGSM

 
Wednesday, June 19, 2019 10:07 PM- George's, Grenada

GOVERNMENT OF GRENADA, 18th June 2019: Grenada continues to attract very low yields on its short term debt instruments with the latest auction of a 91-day Treasury bill on the Regional Government Securities Market (RGSM) yielding an interest rate below 1.80 percent. For the first time in its history, the Government of Grenada was able to attract a sub- 1.8 percent yield on the RGSM.

On June 17, 2019, the Government re-issued an EC$15.00 million, 91 Day Treasury Bill, which was oversubscribed by EC$14.16 million at a cutoff yield of 1.7500%. This is the lowest yield in the region for the year. On March 14, 2019, Grenada also attained a low yield of 1.900% on its 91 Day Treasury Build Issuance. This is a clear indication of investors’ interest in the secure investment and attractive climate that now exists in the tri-island state.

The securities were competitively auctioned and reflected increases in demand by investors. This resulted in a total of $29.16 million in bids, an oversubscription of $14.16 million. Three licensed brokers placed a total of 16 bids.The successful auction and the continuous low yields of Government of Grenada’s Treasury bills are a direct result of local, regional and international confidence in the management of Grenada’s finances and the perception of prudent financial management and consistently reduced risk of investing in Grenada.

 

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Latest Auction Results
Go to full list
Issuer
Auction Date
Tenor/Instrument
Issue Amount
Allotted Amount
Subscriptions
No Of Bids
Yield
Government of Antigua and Barbuda
28th Oct 2019
365 days Tbill
25,000,000
25,000,000
33,501,000
27
3.627
Government of Saint Lucia
22nd Oct 2019
6 years Bond
20,000,000
19,340,000
19,340,000
15
6.250
Government of St Vincent and the Grenadines
18th Oct 2019
91 days T Bill
28,000,000
28,000,000
41,386,000
19
1.998
Government of Grenada
16th Oct 2019
365 days T Bill
10,000,000
10,000,000
29,281,000
18
2.000
Government of Saint Lucia
15th Oct 2019
180 days T. bill
21,000,000
21,000,000
20,265,000
17
4.000
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Upcoming Auctions
Go to full list
Auction Date
Issuing Government
Tenor/Instrument
Issue Amount
Option
Ceiling Rate
14th Nov 2019
St Vincent and the Grenadines
91-day Treasury Bill
28,000,000

4.82
14th Nov 2019
Antigua and Barbuda
365-day Treasury Bill
15,000,000
Option for up to an additional EC$ 5,000,000
5.50
19th Nov 2019
Saint Lucia
10-year Bond
10,000,000

7.26
20th Nov 2019
Antigua and Barbuda
180-day Treasury Bill
20,000,000
Option for up to an additional EC$ 5,000,000
5.00
21st Nov 2019
Commonwealth of Dominica
91-day Treasury Bill
20,000,000

5.00
2nd Dec 2019
Antigua and Barbuda
180-day Treasury Bill
20,000,000
Option for up to an additional EC$ 5,000,000
5.00
5th Dec 2019
Grenada
365-day Treasury Bill
20,000,000

5.00
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