STANDARD AND POOR’S (S&P’s) latest ratings report has given TT a sobering insight into its economic standing. While the sovereign rating has remained at BBB-, but the outlook has been revised from stable to negative because the country’s fiscal and external buffers “have eroded gradually over many years.”

While TT is still considered creditworthy, S&P estimates there is now a one-in-three chance of a downgrade within the next two years. The move would raise borrowing costs, strain reserves and restrict government’s ability to sustain social programmes.

But former senator Vasant Bharath said the country does not stand empty-handed as its democracy remains resilient, net debt is moderate and both the Heritage and Stabilisation Fund (HSF) and Central Bank reserves represent buffers equal to more than half of GDP.