Fitch Warns Pierre Laporte and PL To be Careful
Seychelles Junk Rating : "B" Positive.
Fitch credit rating agency recently reaffirmed its Seychelles rating with a "B" (Junk, high risk) outlook.
Fitch noted that the rating is cautioned and that Government of Seychelles must stick to its marco economic program or Fitch will further down grade Seychelles Credit Rating.
Such a rating is a result of tight fiscal policy, and tight monetary policy, which has led to a reserve of $380 Million, the highest ever achieved in Seychelles which at one point had less then $2Million in the Central Bank, and we defaulted on a $3 Million payout on Lehman Brothers Bonds.
|The tea boy at the IMF|
The rating confirms Seychelles remains a high risk or Junk rating as a country for investment.
Pierre Laporte In Lala Land
On SBC, Pierre Laporte, the Minister for Finance, went off giving a heavy winded speech to the SBC journalist about this great rating and "above average" country rating, as if he was trying to fool James Michel to say: look papa, I got a "B", Above Average, I am smart. Indeed Laporte has done a prudent job up to know mostly, but the rating still leaves Seychelles in JUNK rating meaning HIGH RISK investment center. Relying on only Khalifa does not help this rating move upwardly. Continued supplementary budgets and over spending does not help. Though public external debt is down from 179% of GDP to 79% of GDP, we still have a growing private debt sector that has tagged Seychelles with another 100% debt on GDP. So basically, as Fitch put it, caution is called for to stay the course, and they will be watching carefully. We are in fact just going around in circles. Nothing personal about that Mr. Laporte, and we are not trying to fabricate facts. We are just stating facts accurately, for what they are. You should do the same if you are a responsible person.