After having raised the issuer ratings of French Polynesia in December 2018 to A3 / Prime-1, Moody’s rating agency has just published today, the update of the country’s credit analysis confirming its good financial health.
In its press release, the Agency specifies that “the credit profile of French Polynesia (A3, positive prospects) reflects better financial performances than previously expected and which should remain solid”.
As in December 2018, Moody’s notes that the forces of French Polynesia reside in solid financial performances which will be maintained over the next 2-3 years, good access to bank loans and political stability allowing it to carry out important structural reforms.
The Agency believes, however, that the economy is fragile and volatile, and that the sustainability of funding for the social protection system is not yet assured to date. Nevertheless, it notes that the State support for the funding of solidarity, provided since 2015, is confirmed over the next few years.
In view of all these elements, the rating prospect remains positive and an upgrading of the rating is possible if the rating of the State was also upgraded and if the implementation of the planned reforms was effective.
The Vice-President enthusiastically welcomes this good news, the fruit of rigorous and sound management of the country’s finances, also confirming the fundamental growth trend initiated by the Fritch Government these last few years.