Rowley optimistic about stable S&P outlook

EVEN though international credit ratings agency Standard & Poor has dropped TT’s ratings by one level, the Prime Minister is optimistic about the country’s future economic outlook and performance.

Addressing a political meeting in San Fernando last night, Dr Rowley said even though the rating was dropped from BBB+ to BBB, the agency has upgraded the outlook from negative to stable. Last year it was negative.

Saying TT had been on the brink of collapse, Rowley said the reason for the change to "stable" was "because of the favourable external profile and stable economy. They also said it reflects the country’s solid level of government financial assets and good fiscal external performance.”

He attributed the downgrade to the several external factors in the energy market, including the dry wells in BP’s infill drilling programme and a projected reduction in gas production over the next seven years.

However, Rowley said his government is making sure that does not happen, hence the reason he spent ten days travelling last month to meet with major players in the energy industry: “To make sure this prediction of reduction in gas production does not come to pass.”

He said while government had to take hard decisions with the closure of Petrotrin, that also factored in the S&P projection and projection of a loss in oil production.

Under the successor company, Heritage, Rowley said the drilling programme has moved from zero to 14 rigs and by the end of next week there will be four more, bringing the total to 18 wells being drilled.

“We made hard decisions in your interest and for your business. Any time a government is not prepared to take hard decisions in the people’s interest, that is a government you have no use for,” Rowley said.