20 Feb 2013

Moody's says risks remain in Fiji's economy despite upgrade

4:09 pm on 20 February 2013

Moody's Investors Service says it still sees risks in Fiji's economy despite a positive change in Fiji credit ratings outlook.

Moody's changed the Fiji government's B1 foreign and local currency long-term bond ratings from negative to stable, based on improved economic conditions and better debt sustainability.

A senior analyst for Moody's, Christian de Guzman, says although it is no longer considering downgrading Fiji's credit rating, the country is still four notches below investment grade.

"We continue to see that there are risks related to the spill overs from the political developments that are going on. So we are still continuing to keep a close eye on whether the government can successfully deliver holding the 2014 elections as promised."

Christian de Guzman says Fiji's credit rating is low compared with neighbouring countries such as Australia, New Zealand and Papua New Guinea.