In a report dated August 13, 2020 the ratings agency said “continued assistance from the U.K. will support institutional stability and help weather the global COVID-19 pandemic, although structural limitations will dampen economic growth over the next two years.”
The issuer credit rating for Montserrat is BBB-/Stable/A-3.
Standard & Poor’s explained that “the stable outlook reflects our view that the pandemic will have a material impact on Montserrat’s economy, but that with the U.K.’s support, the island will be able to return to positive economic growth in 2021 with no increase in government debt. We believe that the U.K.’s support for Montserrat remains unchanged, as does the island’s ultimate goal of sustainability. This support will continue to underpin Montserrat’s creditworthiness and somewhat mitigate the risks from external vulnerabilities, particularly given the continuing low-level activity of the Soufriere Hills volcano and the island’s location in a hurricane belt.”
The full report can be read on the Government of Montserrat website in the publications section of the Ministry of Finance and Economic Management page.