FINANCE Minister Colm Imbert and former energy minister Kevin Ramnarine had different views on Friday about international ratings agency Standard and Poors (S&P) confirming a BBB- investment grade on TT.
In a statement, Imbert said S&P confirmed this rating on Thursday.
“This is the first time over the last 15 years that S&P takes a positive action on Trinidad and Tobago."
Imbert said, “In the current situation facing the world economy, with multiple cases of economic and financial distress, negative rating actions are the norm rather than the exception."
The rating singles out TT very favourably, both regionally and globally, as a safe harbour for investors.
He said S&P's decision to confirm this investment grade rating on TT is also a testimony to TT's ability to face the covid19 pandemic in a way that protected the population and the economy.
Imbert believed the decision also indicates S&P's view that TT can "exceed expectations in terms of growth and budget restraint, leading to a decline in the public-debt trajectory.”
Imbert was confident that "the new dynamics of our credit rating will translate into upgrades as we stay the course of budget discipline and growth reinvigoration."
[caption id="attachment_965972" align="alignnone" width="602"] Former Energy Minister Kevin Ramnarine. -[/caption]
But Ramnarine said, "I see nothing to crow about with this revision from BBB minus negative outlook to BBB minus with stable outlook."
He recalled that from 2008 to 2015, S&P gave TT an A investment grade rating
Ramnarine said this information is contained in the 2021 Review of the Economy document which was laid in Parliament last October when Imbert presented the 2021/2022 budget.
"It was only in 2016 that the S&P credit rating slipped from A to A minus. Before that it was consistently A."
Ramnarine said before covid19, the economy was in a state of consistent contraction.
"That is a fact. We must define and accept that reality if we are to move forward."
Outside of a temporary windfall from high oil, gas and ammonia prices, Ramnarine said, "There is nothing that offers hope for the TT economy."
He added that major private sector companies in TT are neither investing nor expanding here.
"Many are heading to Guyana and Suriname. Others are investing in the United States."
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