By S.Browne. Updated 2:05 p.m., Wednesday, July 15, 2026, Atlantic Standard Time (GMT-4).
Minister of State in the Office of the Prime Minister Cheiftian Neptune says St. Vincent and the Grenadines’ latest Moody’s credit rating reflects what he described as years of economic neglect under the previous Unity Labour Party (ULP) administration.
In a statement issued following the release of the rating assessment, Neptune said while the country had faced several major challenges in recent years, including the COVID 19 pandemic, the eruption of La Soufrière and Hurricane Beryl, the current economic situation was also linked to decisions made over a prolonged period.
“These events are factored into the latest Moody’s Rating, which saw our score drop to Caa1 with a negative outlook,” Neptune said.
Neptune argued that the downgrade was “fundamentally a result of the prolonged neglect during the ULP’s time in office”, claiming that the previous administration left behind economic difficulties, including high unemployment, low wages and increased social challenges.
“At the end of last year, when Vincentians went to the polls, it was evident that our country had been left behind by the previous administration,” Neptune said.
The Minister further criticised what he described as years of excessive borrowing and spending, claiming that these decisions did not result in the level of national development needed by St. Vincent and the Grenadines.
The New Democratic Party (NDP) won the November 27, 2025 general election and formed the current government. Neptune said the administration inherited a fragile economy and has since been working to strengthen financial management and create new opportunities for citizens.
“When we stepped into office, we understood that the economy was fragile. What we couldn’t foresee was just how bleak the legacy of neglect from the ULP truly was, until we entered the Financial Complex in Kingstown,” Neptune said.
Moody’s rating is an assessment of a country’s creditworthiness, which reflects how investors and lenders view its ability to manage its finances and meet its debt obligations.
The assessment considers factors including economic performance, government finances, debt levels and the country’s ability to manage financial challenges.
A stronger rating generally indicates greater confidence in a country’s ability to repay its debts, while a lower rating reflects a higher level of perceived risk. A lower rating can affect borrowing conditions, as lenders may require higher interest rates when they consider the risk of lending to a country to be greater.
The Caa1 rating assigned to St. Vincent and the Grenadines places the country within a category considered to carry high credit risk. The negative outlook indicates that Moody’s has identified risks that could place further pressure on the country’s credit position if economic conditions worsen.
Neptune said the NDP Government remains committed to restoring fiscal stability, improving economic growth and creating opportunities for Vincentians.
“The NDP was elected with a clear mandate to rebuild the economy, create jobs, and offer opportunities for Vincentians to thrive at home rather than be forced to leave in search of work,” he said.
He said the government’s development strategy is based on four key areas identified by Prime Minister Dr. Godwin Friday: agriculture, tourism, the blue economy and the new economy.
Neptune also pointed to the government’s memorandum of understanding with Global Port Holdings as an example of investor confidence and potential economic growth.
“Through disciplined fiscal management and steadfast commitment, the Government of St. Vincent and the Grenadines is determined to turn things around, reversing the neglect of the past and delivering for all Vincentians,” Neptune said.
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