(LoopTT, 24.May.2018) – Moody’s Investors Service is projecting an Energy Sector-led rebound in growth to support the fiscal trajectory.
On Wednesday, Moody’s upgraded Trinidad and Tobago’s Trinidad Drilling Ltd.’s (Trinidad) Corporate Family Rating (CFR) to B2 from B3.
The country’s rating outlook remains stable at this time.
Moody’s also noted a narrowing fiscal deficit which it attributed to Government’s restraint and an increase in energy and non-energy tax revenue.
Among the Government’s strategies noted in the report are plans for the liquidation of CL Financial.
Moody’s projects that excluding revenue from asset sales, revenue collection will improve due to higher oil prices and increased gas production, as well as increased non-energy tax collection.
Additionally, the ratings agency stated that the upward revision of energy sector revenue from seven percent of GDP in the original budget to eight percent reflects higher oil prices and increased gas production.
With a full year of production at Juniper in 2018, and prospects for gas production at Shell’s Starfish field to start in the second half of the year, natural gas production could reach 3.8 billion standard cubic feet per day (mmscf/d) by the end of 2018.
Moody’s also identified an increase in corporate tax revenue of more than $500 million in the first half of fiscal 2018 compared to the same period a year ago.
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