MOODY’S ANNOUNCES COMPLETION OF A PERIODIC REVIEW OF RATINGS OF FIJI
Moody’s Investors Service (“Moody’s”) has now completed the periodic review of a group of issuers that includes Fiji and may include related ratings.
Moody’s in a statement highlighted:
The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement.
For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.
moodys.com for the most updated credit rating action information and rating history.
The credit profile of Fiji (issuer rating Ba3) reflects the country’s “ba3” economic strength, which balances moderate per capita incomes against the: ■ economy’s small scale, ■ reliance on tourism and agriculture, ■ and vulnerability to climate change; ■ its “ba2” institutions and governance strength, ■ which takes into account progress on structural reforms as well as increased policy credibility and effectiveness that support economic management.
■ Although voice and accountability remains limited; the Government’s “ba3” fiscal strength, which reflects rising government debt,
■ although the large captive source of domestic financing and increasing engagement with development partners for external financing lowers funding costs and supports debt affordability;
■a■d “baa” susceptibility to event risks driven primarily by domestic political risk, which incorporates a low probability,
■high impact scenario of political instability, including through a change of leadership, that would hinder the government’s ability to implement policies aimed at increasing the country’s economic resilience
■a■d consolidating its public finances over the medium term, while material government liquidity risk reflects limited financing options outside of the national provident fund in long-term borrowing domestically.
The statement summarises Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.