‘Seychelles’ economic outlook positive’ |03 October 2013

International ratings agency Fitch has completed its most recent rating of Seychelles and delivered an overall rating of ‘B’, declaring the economic outlook “positive”.

The government of Seychelles’ strict fiscal discipline and budget surplus were cited as contributing factors for the rating.

The rating is unchanged from this January’s rating of ‘B Positive Outlook’, and the key ratings drivers were positive fiscal dynamics, improved macroeconomic stability, completion of the public debt restructuring process, sustained GDP growth levels and high levels of economic and human growth development.

According to Fitch, a ‘B Positive Outlook’’ rating defines Seychelles as “currently capable of meeting its financial commitments”, but it has warned in its report that any reversal of fiscal reforms or relaxation of expenditure controls could lead to a subsequent downgrade in ratings.

Fitch has also stated in its report that factors which could lead to an upgrade in ratings were continued reduction of public debt levels, enhanced credibility of the macroeconomic framework, continued increase in external liquidity and sustained GDP growth underpinned by continuing structural reforms.

Fitch has affirmed Seychelles’ long-term foreign currency issuer default rating (IDR) at ‘B’, long-term local currency IDR at ‘B+’ and short-term foreign currency IDR at ‘B’. Fitch has also confirmed Seychelles Country Ceiling at ‘B’.

Minister of Finance, Trade and Investment, Pierre Laporte, said that the ratings were important because it provided an independent overview of the Seychelles’ economic outlook both for international organisations and for the people of Seychelles.

“We are very pleased, we think it is as expected, and it proves that our economy is very stable and we are going in the right direction,” said Minister Laporte of the positive rating.

“We are also very pleased that Fitch in its report recognises that our policies are credible and that it believes in where we are going as a country.”