Standard and Poor have downgraded their outlook for Guernsey and Jersey from ‘stable’ to ‘negative’ in a move politicians are blaming on Brexit.
The islands retain their ‘AA-‘ long-term credit ratings, but the credit rating agency says both jurisdictions are vulnerable to external events.
Deputy Gavin St Pier, President of Guernsey’s Policy & Resources Committee, said: “The recent report from S&P Global highlights Guernsey’s flexibility and resilience. S&P revised the outlook for both Guernsey and Jersey from stable to negative but made it very clear that it did so as a result of external issues such as Brexit.”
“S&P reaffirmed Guernsey’s credit ratings as AA- (long term) and A-1+ (short term) and commented that the island has strong and flexible institutions, a wealthy economy and a healthy fiscal position overall. It added that government had successfully restrained the growth of public expenditure in the last five years.”
Jersey’s Treasury & Resources Minister, Senator Alan Maclean, said: “S&P revised the outlook for Jersey to negative to reflect external uncertainties, particularly Brexit, and not due to any deterioration in Jersey’s economy. S&P highlights Jersey’s strong and flexible institutions, wealthy economy and considerable fiscal buffers.”