Finance Minister, Colm Imbert

A mild economic recovery for Trinidad and Tobago.

That’s the outlook from international credit rating agency Standard & Poor’s.

While Trinidad & Tobago’s status has been downgraded from stable to negative, the country’s credit rating has been steady for the first time in three years.

According to Finance Minister, Colm Imbert, the most important aspect of a credit rating is the rating itself, adding that the downgrade occurred because of the collapse of oil and gas prices and production.

The agency has cautioned, however, that it could lower the rating in the next two years should Government’s fiscal consolidation measures fail to shrink the deficit to the degree that it forecasts, leading to larger increases in net general government debt, or higher interest payments.

The rating could also be lowered if Government fails to implement key institutional reforms such that large revenue collection leakages and weaknesses in data provision persist into the foreseeable future.

But UWI Senior Economics lecturer Roger Hosein says while there is some degree of economic growth, he has voiced concern regarding the type of that growth, calling it paper-thin.