Imbert slams Govt response to Moody’s downgrade as ‘defensive’

Former finance minister Colm Imbert has cautioned that Trinidad and Tobago’s credit ratings could be at risk following Moody’s decision to revise the country’s outlook from stable to negative, citing primarily short-term risks linked to declining official foreign exchange reserves.

Speaking yesterday, Imbert criticised the response of Finance Minister Davendranath Tancoo to the outlook revision, describing it as a “defensive reaction” that failed to adequately address the concerns raised by the international ratings agency.

In comments to the Sunday Express via WhatsApp, Imbert noted that credit rating agencies such as Moody’s assess a wide range of indicators when determining a country’s creditworthiness. These include fiscal performance, debt levels, economic growth prospects, foreign exchange reserves, and the overall policy environment.

He argued that the Government should treat the revised outlook as a serious warning signal rather than dismissing it, as a downgrade could increase the cost of borrowing on international markets and negatively affect investor confidence.

Moody’s decision to change the outlook does not amount to an immediate downgrade, but it signals an increased risk that the country’s credit rating could be lowered if underlying issues—particularly pressures on foreign exchange reserves—are not addressed.

The Government has maintained that the country’s economic fundamentals remain sound. However, Imbert insisted that international perceptions matter and urged the administration to take proactive steps to safeguard fiscal stability and preserve Trinidad and Tobago’s credit standing.