After receiving a high score from an influential global finance agency last week, the Virgin Islands will be seen as a “savvy investment,” according to Premier Natalio “Sowande” Wheatley.
Standard and Poor’s, which is considered one of the top rating agencies in the world, gave the territory a sovereign credit rating of BBB/A-2 — one of its highest.
“The British Virgin Islands has made a strong, long-term commitment to accountability, transparency and responsibility in fiscal matters, and our efforts have not gone unnoticed,” the premier said in response to the news.
In explaining the reasons for the rating, the S&P said it expects the territory to be a “stable” investment hub for at least the next three years.
The premier described the score as a sign that the territory’s financial industry is a global leader.
“This rating signifies that our global financial services industry rests on a solid foundation,” he said. “Moreover, it is poised to meet the complex and diverse needs of today’s savvy investors.”
The premier added that the announcement will bring various economic benefits to the territory.
“This credit rating is expected to lower borrowing costs for government projects, benefitting residents and businesses through enhancements to infrastructure and public services as well as economic growth opportunities,” Mr. Wheatley said.
Airport project
The rating comes after Mr. Wheatley floated the idea of using government bonds to pay for the much-delayed expansion of the Terrance B. Lettsome International Airport on Beef Island.
In an exclusive interview with the Beacon last month, Mr. Wheatley said the option is being considered along with public-private partnerships and other funding mechanisms to finally allow take-off for the controversial project.
“Very soon our sovereign rating will be revealed, and when that comes out we will see what the rating is,” he told the Beacon on Jan. 15. “And there is a possibility, of course, that we can issue government bonds. But, of course, that idea is a means of raising the capital to fund the actual airport.”
In a statement, the government described the S&P rating as proof for investors and other partners that the VI is on a par with global standards.
“The rating supports assurance to institutional investors, global financial institutions, development partners and others who conduct business within the territory, which is proving an attractive destination for foreign direct investment and private-sector opportunities,” according to the statement.
