Fitch Affirms Seychelles "B" Rating:Meaning Vulnerable
Fitch Ratings has affirmed Seychelles' Long-term foreign currency Issuer Default Rating (IDR) at 'B', Long-term local currency IDR at 'B+' and Short-term foreign currency IDR at 'B'. The Outlook is Positive. Fitch has also affirmed Seychelles' Country Ceiling at 'B'. KEY RATING DRIVERS Seychelles' 'B' IDRs and Positive Outlook reflect the following key rating drivers: -Positive fiscal dynamics. Strong budget discipline has been enforced since the start of the IMF-supported programme at end-2008. The primary budget surplus has averaged 8% of GDP since 2009 due to substantial reforms including a marked cut in public sector employment, tighter control on expenditure and reform in public companies. Fitch expects the primary surplus to be 5.1% of GDP in 2013 and public debt to decline to 54% of GDP by 2015 (from 70.5% in 2012) due to continuing surpluses. -Improved macroeconomic stability. Inflation has slowed since its peak ...