1. ITV Report

Jersey and Guernsey's credit rating changed from negative to stable

The rating was adjusted following the UK’s general election result. Credit: Kathrin Deckart/DPA/PA Images

The outlook for Jersey and Guernsey's long term credit rating has been changed from negative to stable.

A long term credit rating looks at how likely a country is to pay its debts. The rating is often listed as letters, ranging from AAA being excellent to D.

Every six months the rating is reviewed. Jersey and Guernsey have maintained their rating of AA but the outlook has been moved from negative to stable.

Standard and Poor's, the company that review the two islands credit rating, have said that Jersey ‘remains vulnerable to the fortunes of the UK’s financial sector’ but ‘immediate risks have been dissipated’.

This is a really positive outcome and reflects that Jersey has demonstrated it has very strong capacity to meet its financial commitments through the work the Government has undertaken to bolster reserves and prepare Jersey for a potential economic downturn. The Government does however, remain conscious of the potential risks to Jersey’s economy, pending the outcome of the UK’s future negotiations around Brexit and we will therefore continue to take a cautious approach in our financial planning.

– Deputy Susie Pinel - The Minister for Treasury and Resources

Deputy Gavin St Pier has said that the revised credit rating for Guernsey reflects their own assessments.

We are pleased that S&P has confirmed our own assessments that Guernsey continues to be a fiscally, economically and politically stable jurisdiction. This reflects the island’s economic performance over the last year or so. The assessment also reflects the important work undertaken during the Brexit process to project our own stability in contrast to the UK’s instability and to ensure Guernsey was prepared for any and all outcomes.

While the risk of a disorderly exit for the UK from the EU has receded for the time being, it remains equally important that we continue to work closely with the UK Government to ensure that Guernsey’s interests are promoted and protected as negotiations continue to the next stage.

If we are to retain this improved assessment by S&P of our outlook, we must retain our stability through the change of government with our own general election in June.

– Deputy Gavin St Pier, President of the Policy & Resources Committee

The ratings were adjusted following the UK’s general election result. Standard and Poor's believe a majority UK government gives ‘more room to engage with the EU’.