Guernsey pulls out of credit rating programme

Guernsey's government will no longer be issued a sovereign credit rating after pulling out of the Standard and Poor's scheme.

Guernsey was issued an AA+ rating by the agency in November.

The island government was first reviewed in 2009 when the States planned to borrow for capital projects.

A States spokesman said that as there were no short or medium-term plans to borrow money paying to keep the rating was a waste.

The agency issues ratings to countries based on how sound their finances are, to aid potential creditors.

Standard & Poor's says the AA+ rating was a reflection of the island's high levels of prosperity and robust financial position.

Director of stockbroker's Cenkos, Mark Boulsfield, says the island does not need it.

He said not having a rating would not put Guernsey at any disadvantage.

"It costs money, you pay for your rating, as at the moment we don't want to borrow, there is not a need to pay for a rating if we are not going to use it," he said.

In a budget statement it says the plan to borrow money was rejected by the States.

It goes on to say: "In order to maintain the rating a fee is payable each year and Standard and Poor's make an annual two-day visit to the island to meet politicians, the Guernsey Financial Services Commission and island businesses.

"A significant amount of staff time is therefore involved in arranging the visit and attending the various meetings.

"The Treasury and Resources Department has therefore advised Standard and Poor's that it no longer wishes to maintain the island's sovereign credit rating."