FINANCE Minister Colm Imbert welcomed an announcement by Caribbean credit rating agency CariCris that Trinidad and Tobago's rating is CariAA, the second highest rating on its scale.

In a statement issued by the ministry, Imbert said, "We have taken note of the decision by CariCris to keep TT well into investment-grade territory, although reducing our rating by one notch because of our active use of fiscal policy to soften the covid-related blow to the economy."

He said CariCris has put a stable outlook to Trinidad and Tobago's rating and this this "shows that CariCris believes in our determination to bring our public finances under control."

Imbert said, "Although our debt level has indeed increased, we believe that we took the appropriate decisions, in the short and long term interest of the population.

"This is because we have patiently built a strong fiscal position that we are able to help our economy in truly exceptional circumstances."

The ministry said at CariAA, TT remains at the top of CariCris' published sovereign ratings in the region.

"In fact, CariCris agrees that the 'level of creditworthiness of the Government of the Republic of TT, adjudged in relation to other rated sovereigns in the Caribbean, is 'HIGH' and that 'the ratings convey investment grade'."

The ministry said CariCris noted that "increased fiscal spending in response to covid19 in 2020 and 2021 is being financed through a combination of external debt (bond issues, multilateral agencies and bilateral partners), local debt through commercial banks, and drawdowns from TT's sovereign wealth fund, the Heritage and Stabilisation Fund (HSF)."

CariCris, the ministry continued, said "the use of the HSF is prescribed for such situations as currently being faced and helps to contain the accumulation of debt."

The ministry added that the prudent portfolio management of the HSF and its continued sizeable balance of US $5.6 billion (as of May 2021) represents a key credit strength for the Government. CariCris, it said, identified a satisfactory financial sector, monetary and exchange rate conditions; comfortable debt service coverage when compared to its regional peers; a slower rate of GDP decline expected in 2021 and a return to growth in 2022; anticipated improvement in fiscal balances as covid19 impacts draw to a close given; vaccinations domestically and globally; some positive tax and expenditure measures and continued financial sector soundness and strength in international reserves and import cover, as other factors which CariCris used in its determination of TT's CariAA rating.

At a virtual news conference hosted by his ministry on Monday, in reference to a BBB- investment grade that TT received from international ratings agency Standard and Poors, Imbert said, "We have the best credit rating in the Caribbean."

He cited Suriname and Belize, which are in selective default, as examples.

Selective default is a situation where a country elect