S&P Global Affirms Jamaica's Credit Rating Amid Economic Strain
What happened
S&P Global Ratings affirmed Jamaica’s ‘BB’ long-term and ‘B’ short-term sovereign credit ratings on September 21, 2026. This affirmation occurred as the country grapples with economic contraction expected at 1.1 per cent in 2026. The economic strain is attributed to the fallout from Hurricane Melissa and ongoing El Niño-driven drought.
From jamaicaobserver.com
Why it matters
The ratings affirmation reflects Jamaica's expected prudent fiscal management, with fiscal deficits projected to fall below one per cent of GDP by the end of the forecast period. However, the economy is facing significant sectoral challenges, including a 20 per cent drop in tourist passenger arrivals in the first half of 2026. The agency anticipates a rebound in 2027 and 2028, supported by major reconstruction efforts.
El Niño is causing intensified drought conditions across the Caribbean, impacting agricultural stability in several nations, including Jamaica.
From jamaicaobserver.com
Who's involved
- JamaicaIsland state in the Caribbean Sea facing economic contraction and sectoral strain.
- S&P Global RatingsCredit rating agency that affirmed Jamaica's sovereign ratings.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- JamaicaSpeculative
Jamaica might incur higher costs related to infrastructure and agricultural recovery due to the expected economic contraction and damage.
Keep exploring
Part of
El Niño is causing intensified drought conditions across the Caribbean, impacting agricultural stability in Belize, the Bahamas, Hispaniola, and Jamaica.Also in this story
- The combination of El Niño, Middle East conflict, and resulting supply chain disruptions is causing drought concerns in the Caribbean.
- Amid El Niño strengthening hot and dry conditions, expert Michael Taylor advises preparation for drought crises in Jamaica.
The entities involved
-
Jamaica
island state in the Caribbean Sea
-
S&P Global
American publicly traded corporation, formerly McGraw Hill Financial, Inc
Related events
- Puerto Rico and Jamaica are facing shared vulnerabilities due to climate change, specifically regarding drought conditions.
- Belize, Barbados, and Jamaica are facing economic challenges, leading to negotiations on concessional financing and climate resilient debt clauses with the World Bank.
- El Niño phenomenon causes climate variability impacts affecting Jamaica and the company Eastern.
- Amidst the aftermath of Hurricane Melissa, Jamaica secured J$120 billion in multilateral borrowing while Barbados tested CRDCs through sovereign bond restructurings.
- Hurricane Melissa battered Jamaica while El Niño worsened drought, prompting Jamaican representatives to discuss climate financing at UNEP.