14 Feb 2013

Moody's revises outlook on Fiji's B1 rating to stable

2:30 pm on 14 February 2013

Moody's Investors Service has changed the Fiji government's B1 foreign and local currency long-term bond ratings to stable from negative.

The key drivers for the decision are what Moody's describes as improved fiscal and macroeconomic outcomes, as well as the demonstrated stability of the external payments position.

It notes that the exchange rate in relation to the US dollar has consequently stabilised, improving debt sustainability, while the Fijian dollar's relative weakening against the Australian dollar has supported tourism prospects.

Foreign exchange reserves have also rebounded to about 895 million US dollars from a low of 240 million dollars in March 2009.

Signs of economic momentum in Fiji have been balanced with the ratings agency's observation that the national economy is growing at a slower pace compared to similarly rated countries.

The latest data on Fiji's investment inflows has not been made not available.