Fitch Ratings maintains Seychelles Long Term Foreign Currency IDR at BB-, with a Positive Outlook
March 11, 2025
Fitch Ratings has affirmed Seychelles' Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Positive Outlook.
This means Seychelles has maintained its rating from the last assessment conducted in September 2024.
According to the report ‘Seychelles' 'BB-' rating is supported by relatively high income levels, strong World Bank Governance Indicators (WBGI; fourth highest among 'BB' rated sovereigns), and support from multilateral creditors.’
While, in 2024, Fitch noted a flat performance in the tourism sector, this was offset by strong growth in the non-tourism sector, with construction growth of 6% due to major hotel projects.
‘Information and communication technology growth was estimated at 10% based on the volume of data traffic, but output from the fisheries sector was flat’.
Fitch has confirmed potential growth has been forecasted in 2025 with higher tourist arrivals, a ‘rebound in manufacturing of fisheries products (the main tuna canner is anticipating production growth of 8%), still solid tourism-related construction spending ahead of the September 2025 elections are forecast to lift real GDP growth to 4% in 2025. We then project growth to ease to the trend level of around 3.5% in 2026’.
Fitch also noted that Seychelles’ declining debt is a positive trend saying their ‘forecast fiscal path is consistent with a further fall in government debt/GDP, which it projects to reach 54.3% by end-2026 (forecast 'BB' median 54%).’
http://www.finance.gov.sc/uploads/files/Fitch-Affirms-Seychelles-at-BB-Outlook-Positive.pdf