Moody’s Rating: Mauritius maintains rating to Baa3 with a stable outlook
On 26th July 2024, Moody's Ratings (Moody’s) affirmed Mauritius' long-term credit rating for foreign and local currency issuers at Baa3 with a stable outlook. This decision reflects Mauritius' strong economic growth and political stability, balanced against high debt levels and the small size of its economy. The stable outlook indicates Moody's expectation that Mauritius' credit profile will remain consistent with Baa3-rated sovereigns.
Mauritius' economy has shown resilience, with high growth rates since 2022, driven by a recovery in tourism and increased investment. The government's focus on fiscal consolidation and economic diversification supports this positive trend.
Moody's noted that Mauritius' sizeable international reserves and stable political system support the country's economic stability. The local and foreign currency ceilings remain at A2, reflecting the country's strong legal and regulatory framework.
Mauritius' fiscal indicators have improved, with a declining fiscal deficit and a gradual reduction in debt expected. The government's efforts to consolidate its finances and new revenue measures support debt solvency and fiscal priorities such as renewable energy and pensions.?
Overall, Mauritius' credit ratings highlight its strong economic recovery, progress in fiscal consolidation, and ability to withstand shocks, underpinned by effective policy measures and robust institutions.
Source: Moody’s Ratings?