(Global Credit Research, 8.Dec.2020) — Moody’s Investors Service reviews all of its ratings periodically in accordance with regulations — either annually or, in the case of governments and certain EU-based supranational organisations, semi-annually. This periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.
Moody’s conducts these periodic reviews through portfolio reviews in which Moody’s reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody’s issues a press release following each periodic review announcing its completion.
Moody’s has now completed the periodic review of a group of issuers that includes Trinidad & Tobago and may include related ratings. The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
The credit profile of Trinidad and Tobago (issuer rating Ba1) is supported by the country’s “b1” economic strength, to reflect the slow pace of economic growth in recent years, with nearly five consecutive economic contractions, and the economy’s relatively small size and dependence on the oil and gas sector, factors that are partly offset by high income levels.; Trinidad and Tobago’s “ba3” institutions and governance strength reflects a relatively strong position in governance indicators relative to peers, balanced by macroeconomic data limitations in terms of consistency and timeliness which, coupled with institutional constraints, limit the government’s capacity to execute fiscal policy.; its “b2” fiscal strength, reflects an elevated and rising debt burden that is offset by relatively large fiscal reserves; and its “a” susceptibility to event risk, driven by banking sector risk.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Sovereign Ratings Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
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