International credit rating agency Standard and Poor’s have announced that Guernsey has retained its AA+ rating. Guernsey’s revenue flexibility and sizable assets combined with the government’s robust fiscal position have been cited as reasons for the high rating.
Guernsey had previously been unconcerned regarding the rating as it was not looking to develop its public borrowing profile, but this changed and it was awarded the AA+ rating in October 2014 prior to successfully raising a £330m bond issue which completed in December 2014 which enabled the Guernsey government to secure a fixed rate of interest at 3.375% maturing December 2046.
AA+ is the highest rating that a jurisdiction like Guernsey can achieve under the current ratings methodology due to the fact that it does not have its own currency, the currency of Guernsey being British sterling.
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