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Pacific Islands Development Program, East-West Center

With Support From Center for Pacific Islands Studies, University of Hawai‘i

Moody’s Upgrades Fiji Economic Rating To ‘Stable’
Improved macroeconomics, external payments cited

WELLINGTON, New Zealand (Radio New Zealand International, Feb. 14, 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 U.S. dollar has consequently stabilized, 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 US$895 million from a low of US$240 million 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.

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