On 19 November 2021, Fitch Ratings (“Fitch") upgraded Seychelles’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B+’ from ‘B’ with a Stable Outlook. We recall, back in May 2021, that Fitch deemed the ‘B’ rating appropriate for Seychelles given its high level of public and external indebtedness and its vulnerability to economic shocks¹.

This improved rating is telling of the positive economic rebound faced by the country following an upsurge in tourism arrival. Additionally, swift vaccination rollout, a less stringent policy for inbound tourists and the emergence of new tourist markets (Russia, Israel, UAE and Saudi Arabia) account for this recovery. As Seychelles amasses prominence for its strong governance, development and good record of public debt reduction pre-pandemic, Fitch is already projecting real GDP growth to reach 6.0% in 2021, peak at 6.8% in 2022 and moderate to 4.8% in 2023.

Read the full commentary from Fitch Ratings here

¹Access our past news release on Seychelles’ ‘B’ rating here