TT government excellent credit rating due to PP's fiscal policies: Dookeran

The Clico policyholders Group told reporters Sunday Trinidad and Tobago's positive “A” rating by Standard & Poor’s shows that Finance Minister Winston Dookeran is not telling the country the truth about the state of the economy.

The group's deputy chairman Peter Permell said news of “A” grade for TT’s foreign and local credit rating is contrary to what Dookeran has said about economic constraints, noting that "the economy is not doing as badly as we are told". And Permell said his group is now questioning the “veracity” of Dookeran’s statements.

“It is incumbent on him to clarify to the policyholders and the nation what is the true position because both he and Standard and Poor’s cannot be right,” he said.

The credit rating agency determines risk ratings for countries that issue debt on global markets. Its best rating is AAA with C being its lowest.

However, Dookeran said he is distressed by the "ignorance being displayed" by some people with respect to financial matters. He told the Newsday newspaper the Policyholders Group should be happy that the country has retained its “A” rating during difficult financial challenges.

“In light of what is happening worldwide and specifically the issue with Clico we could have been downgraded if I did not convince them,” Dookeran said. The Finance Minister stressed that if he had not taken certain actions TT would have been received a lower rating.

Dookeran said he was able to convince the agency that while the Clico situation is exposing the country to risk, the government is able to manage its financial affairs. “In that context we are seen as borrowers who can be trusted. That is the object of a credit rating,” he said.

The government has offered Clico policyholders $75,000 in cash with a promise to pay any amount beyond that in equal 20-year bonds with no interest. 

Prime Minister Kamla Persad-Bissessar promised in her New Year message to the nation that could change if the country's financial situation imporves enough to allow an adjustment to the 20-year bonds.

The Policyholders group is threatening legal against against the state.