This analysis is largely based on updated information from their last visit to the Island, in January of this year, when they met politicians, senior civil servants, regulators and business representatives. The rating committee agreed that the updated information confirmed that all key rating factors were unchanged.
In its report S&P noted 'the Island’s strong and flexible institutions, wealthy economy and considerable fiscal buffers'.
Treasury and Resources Minister, Senator Alan Maclean, said “We are very pleased with the outcome of this latest review. It continues to reflect the Island's strong economy, healthy reserves and robust plans to balance our budgets by 2019. We need to be ready for external risks to our economy, but the review has highlighted the value of our flexible institutions in weathering Brexit uncertainties. “This report is an analysis of Jersey by a globally recognised rating agency and it highlights the significant economic resilience that will see us through these challenging times.”
In its report, S&P noted:
- Strong performance in Jersey's non-finance sector led to solid GDP growth in 2016, though Brexit uncertainties will likely flatten GDP growth over our three-year forecast horizon
- A strong outturn in headline general government revenue has improved Jersey's fiscal balance
- We believe fiscal deficits will gradually decline, with Jersey set to reach a balanced position by 2019
- We are therefore affirming our long and short-term sovereign credit ratings on Jersey at AA-/A-1+
- The stable outlook reflects our view that, over the next three years, the risks to Jersey's financial sector and its fiscal performance will be balanced by its still-significant economic resilience