Moody’s upgrades Trinidad and Tobago’s rating outlook to stable
Key Points(5)
- Moody’s Ratings has upgraded Trinidad and Tobago’s sovereign rating outlook from negative to stable while affirming the country’s Ba2 rating, a move the government says reflects growing international confidence in its economic strategy.
- The Ministry of Finance announced the change Tuesday, saying Moody’s cited an improvement in the country’s external prospects and steps taken to manage its debt obligations.
- According to the ministry, Moody’s highlighted the government’s proactive debt management strategy, including an international bond issuance in January that facilitated the partial redemption of a US$1 billion bond due in August 2026.
- The transaction improved the country’s debt maturity profile and helped reduce external vulnerabilities, the ministry said.
- Moody’s also pointed to Trinidad and Tobago’s financial buffers, including the Heritage and Stabilisation Fund.
Moody’s Ratings has upgraded Trinidad and Tobago’s sovereign rating outlook from negative to stable while affirming the country’s Ba2 rating, a move the government says reflects growing international confidence in its economic strategy.
The Ministry of Finance announced the change Tuesday, saying Moody’s cited an improvement in the country’s external prospects and steps taken to manage its debt obligations.
According to the ministry, Moody’s highlighted the government’s proactive debt management strategy, including an international bond issuance in January that facilitated the partial redemption of a US$1 billion bond due in August 2026. The transaction improved the country’s debt maturity profile and helped reduce external vulnerabilities, the ministry said.
Moody’s also pointed to Trinidad and Tobago’s financial buffers, including the Heritage and Stabilisation Fund. The ministry said the country’s combined cash and equivalent reserves amount to approximately 32% of gross domestic product, while its interest-to-revenue ratio remains below 14%, broadly in line with similarly rated countries.
The rating agency is also projecting a significant increase in Trinidad and Tobago’s hydrocarbon production beginning in late 2027.
The outlook upgrade comes shortly after the International Monetary Fund completed its 2026 Article IV consultation with Trinidad and Tobago.
According to the Finance Ministry, the IMF concluded that the country’s debt remains sustainable over the medium term and that Trinidad and Tobago continues to have full access to international capital markets.
The ministry said the IMF also praised reforms to the National Insurance System, which the government says have extended the system’s sustainability by 12 years.
Moody’s also cited Trinidad and Tobago’s removal from the European Union’s list of non-cooperative tax jurisdictions as a positive development.
The government welcomed the revised outlook, saying it follows efforts over the past year to strengthen fiscal discipline, improve revenue administration and pursue fiscal consolidation.
“This is a defining moment for our country,” Minister of Finance Davendranath Tancoo said. “When two of the world’s most respected institutions independently affirm the direction we have set, it sends a powerful signal to our citizens, investors, and partners that Trinidad and Tobago is firmly back on a path of stability and renewed confidence.”
The minister said the government would continue efforts to deepen fiscal consolidation, modernize state institutions and diversify the economy.
