Latest Guernsey credit rating welcomed

The States has welcomed the latest credit rating for Guernsney remaining at A+/A-1, with a stable outlook.

This was given by Standard and Poor Global (S&P), an independent international credit rating agency which checks the financial reliability of countries and companies.

In its latest review, S&P confirmed there was no change to its long and short-term sovereign credit rating for Guernsey.

Deputy Andrew Niles, Vice-president of the Committee for Economic Development (ED), said S&P had recognised that the tax reforms planned for 2028, including the Goods and Services Tax (GST), would strengthen and diversify the island's revenue.

Niles said: "The agency states that these reforms will strengthen and diversify Guernsey's revenue base, improve its long-term fiscal position, support the island's capital investment programme, and reinforce fiscal sustainability."

In its review, S&P said the stable outlook reflected "broadly balanced risks to Guernsey's balance sheet" and overall creditworthiness over the next two year.

The agency estimated Guernsey's economy to have grown 2% in 2024 and said it expected the authorities to continue to prioritize sustainable long-term public finances.

S&P highlighted the substantial public-sector asset base as a key rating strength.

A new financial strategy is set to be unveiled in March, but ED members are divided in their opinions on whether it will deliver sufficient benefits.

ED commissioned consultants Oliver Wyman to produce the strategy, which cost £559,300, 62.5% of which is being met by the States and the rest paid for by industry.

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