Mauritian Government Officials Meet with Moody’s

In the wake of the report titled “The State of the Economy,” representatives from the Ministry of Finance recently engaged in discussions with Moody’s, one of the world’s leading credit rating agencies. Financial Secretary Anand Acharuz, accompanied by Chief Economic Adviser Gilbert Gnany, traveled abroad to hold talks with Moody’s representatives.

While the outcomes of these discussions have not yet been disclosed, they are believed to center around the upcoming rating for Mauritius, which is scheduled for July.

This dialogue follows the December release of “The State of the Economy” report by the Ministry of Finance.

The document raised concerns regarding manipulated statistics on growth, Gross Domestic Product (GDP), and public debt ratios by the previous administration. Government officials have repeatedly voiced apprehensions about a potential downgrade for Mauritius, stemming from the economic legacy left by the former Minister of Finance.

Such a downgrade could categorize the country as having “junk status,” severely impacting its reputation and hindering its ability to raise funds or borrow from international financial markets.

Moody’s has already provided commentary on the economic state of affairs following insights from “The State of the Economy.”

In a statement posted on its website on December 16, the agency highlighted that Mauritius’ ability to fulfill its economic commitments is crucial for restoring confidence and supporting its public debt reduction program.

Moody’s acknowledged former Prime Minister Navin Ramgoolam’s pledge to reduce debt relative to GDP to 60%, while achieving budgetary balance, characterizing it as a firm commitment towards that goal.

The agency anticipates sustained economic growth that would contribute to further fiscal consolidation.

This outlook was reinforced when Moody’s confirmed Mauritius’ Baa3 rating in July 2024, projecting a growth rate of 5.9%, significantly above the average of 3.8%, and a reduced deficit of 4.9% of GDP by 2024.

It remains uncertain whether Acharuz and Gnany successfully conveyed the government’s determination to rectify the economic situation and implement fiscal reforms to avoid a downgrade.

Sourc: l’Express