T&T suffers big blow

By Asha Javeed
May 02, 2015 – trinidadexpress.com

DownTrinidad and Tobago has suffered a big blow to its status as the place to invest in the Caribbean after international agency Moody’s downgraded the country’s credit rating from stable to negative.

Moody’s on Thursday downgraded Trinidad and Tobago’s Government bond rating and issuer rating to from Baa1 to Baa2.

The ratings are used and considered by international investors looking to do business in T&T.

Moody’s justification for the downgrade, which happened on Thursday, are:

1. Persistent fiscal deficits and challenging prospects for fiscal reforms.

2. Decline in oil prices and limited economic diversification to weigh negatively on economic growth prospects.

3. Weak macroeconomic policy framework given lack of a medium-term fiscal strategy; and inadequate provision of vital macroeconomic data.

As a consequence of that action, Moody’s also downgraded two State energy companies—the National Gas Company’s (NGC) and the Petroleum Company of Trinidad and Tobago (Petrotrin)—because of the high dependency on the companies by the Government.

In explaining why it chose to downgrade T&T, Moody’s said several factors contributed to this:
Full Article : trinidadexpress.com

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Negative rating: Moody’s unhappy with T&T’s fiscal measures
Citing persistent fiscal deficits, the decline in oil prices and a weak macroeconomic policy framework among other concerns, Moody’s Investors Service has downgraded T&T’s government bond rating and issuer rating to Baa2 from Baa1 and changed the outlook for the country from stable to negative.

Rowley: Result of wild spending
Opposition Leader Dr Keith Rowley says the People’s Partnership Government should accept “personal and direct” blame for the Moody’s downgrade of this country. “This Government has run a deficit in every single budget, spending far more than we were earning and there was no plan to change that, (only) old talk,” he added.

Rowley: A day of shame for T&T
“Today is a day of shame…This is not a good thing for Trinidad and Tobago and it was entirely avoidable,” Opposition Leader Dr Keith Rowley has said in response to Moody’s downgrade. The downgrade of Trinidad and Tobago’s credit rating by Moody’s flies in the face of everything this Government has been saying in praise of its own stewardship, he noted.

Moody’s reflects ‘failure to diversify’
ECONOMIC analyst Indera Sagewan-Ali yesterday said the decision by international ratings ­agency Moody’s to lower this country’s credit rating ­reflected the prolonged lament of economic watchdogs about the failure of successive governments to ­diversify.

20 Responses to “T&T suffers big blow”


  • There is nothing surprising about this downgrade. The Province of Alberta, Canada, an oil and gas producing economy has also been downgraded from AAA to Aaa by Moody’s, but remains unchanged by other international credit rating agencies.Most oil producing countries have been downgraded. The high oil prices allowed T&T to continue its gas subsidy, wage increases much higher than inflation, and excessive government employment, for example, approximately 80% of the population of Tobago are dependent on government paychecks.The persistent budget deficits were based on higher oil prices.The call by Moody’s for diversification is not new. Talk of diversification has been reverberating since Eric Williams days.No government of T&T has been successful in this effort.Expensive projects are being announced, based on foreign loans. The level of personal debt in T&T is also unsustainable in the long term.Worst of all,the long term supply of resources, oil and gas in T&T is NOT indefinite, but limited to a relatively short period.
    The big question: Is there a political party in T&T willing to go before the people in the next election with a manifesto which includes ending the gas subsidy, stopping salary increases for public sector employees, cutting wages for all public sector employees,reviewing the feasibility of all major projects, reducing wages for parliamentarians, shrinking the size of government, increasing income taxes?

    • Jerry C. Hussain

      I disagree with your solution. First the government has to stop the stealing and the cost overruns.

      • Jerry C. Hussain

        NOW THIS……..

        Moody’s downgrades First Citizens

        Published:
        Friday, May 8, 2015

        Karen Darbasie
        First Citizens Bank Limited is the latest local entity to be downgraded by Moody’s Investor Services. The banking group’s latest long term local and foreign currency deposit ratings has gone down to Baa2 from Baa1 and it has been assigned a counterparty risk assessment of Baa2(cr) / Prime-2(cr).

        In addition, First Citizens’ foreign currency short-term deposit rating was downgraded to Prime-3 from Prime-2, while the Prime-2 local currency short-term deposit rating was affirmed. Its outlook has been revised to negative from stable, although its baa3 baseline credit assessment (BCA) was unaffected.

        Moody’s said the bank’s negative outlook reflects the negative outlook on the government bond rating. However, its baa3 BCA reflects its robust capitalisation and liquidity buffers.

        The ratings agency also considered the relatively stable funding from retail deposits, from which First Citizens benefits as one of the largest banks in the country.

        It said: “Key credit challenges derived from T&T’s more modest economic growth prospects given the recent decline in oil prices. These weaker growth prospects are expected to drive a deterioration in asset quality and an increase in provisioning expenses, and to limit future earnings potential.”

        First Citizens Bank Limited is 82.64 per cent state owned with total consolidated assets of $37 billion and shareholders’ equity of $6.2 billion.

        The downgrade came just as the banking group announced successful six months of operations with an after-tax profit of $325.6m representing growth of 1.5 per cent over the corresponding period in 2014.

        “This is a demonstration that the fundamentals of the Group remain strong,” said group CEO Karen Darbasie.

        First Citizens Group also showed significant growth in its loan and investment portfolio.

        “We were able to manage our expenses while we grew our total income, resulting in an increase in operating profit by $9.4m,” Darbasie said, further noting that total assets amounted to $35.8 billion—a growth of 2.7 per cent. Most remarkable were our loan and investment growth of 15.8 per cent and 7.2 per cent respectively,” she said.

  • Rowley’s emotional, angry exclamation referring to the downgrade as “a day of shame” fits with his usual negative, opportunistic and uninformed utterances of the “blame Kamla” agenda, in his desperation to become PM.

    • We know a country based on it’s leadership. Castro was embargoed for more than fifty years, called all kinds communistic names, it’s GDP in terms of materials worth was nothing close to that of Trinidad and Tobago, but in spite of all this, happened to have earned the distinction of being the country with the highest literacy rate in the western hemisphere. The United States is included in that calculation. We are all aware that Cuba was not as fortunate as Trinidad and Tobago to have resources such as oil and gas. Agriculture, which T&T ran away from was the main produce. Another distinction that Cuba has is, that it has the most advanced technology in terms of tropical diseases. It schools and graduates more doctors and nurses than any other country in the Caribbean. It supplies, Africa, the Caribbean (especially T&T) with first class doctors and nurses. During the wars of independence, Cuba was first and foremost in sending it’s soldiers to fight the wars of liberation in Africa. I am aware that this topic is not about Cuba but it definitely is about LEADERSHIP! And that is the poignant point in the discussion of piloting a nation to success. Barack Obama inherited an unemployment rate of 12% when he took office, the Stock Market Index (Dow Jones) was down to 6,000. Today the United States enjoy an unemployment rate of less than 5% and the Stock Market has never been higher, harboring 18,000 plus. Old talk is not leadership. Smiley, smiley, nicey, nicey is not leadership. Promising people the moon and the stars is not leadership. Using the Treasury left by your predecessor and bringing the economy from positive to negative is not leadership. Leadership is the constant measuring of production, analyzing the impact of how much we sell and how much we buy and weighing how that measures against our deficits. With such measuring and analysis, a leader makes adjustments to make it’s economy productive. One such tool utilized is the setting of interests rates, unemployment rate, spending adjustments and so on. What kind of leader after learning of the drop of your main product, oil, goes on a spending spree and orders LRVs, give away government lands, give away money like crazy to churches and spends like there is no tomorrow? Such a leader cannot be called visionary! Such a leader CANNOT have the interest of the country she leads at heart! Such a leader CANNOT be said to be engaged! Such a leader CANNOT have the welfare of the people she leads at heart! Such a leader cannot be said to be smart! When such a leader does not seek to staff it’s administration with the best available minds that leader is foolish. This is what Moody’s and Standard and Poors are saying about Trinidad and Tobago, they are in effect saying that WE LACK PROMINENT LEADERSHIP. That is what they are saying. No amount of excuses about South Africa, Russia, Brazil and India can change where we stand in the eyes of the International community. Larry Howai and Jwala Rambaran can make excuses until they are blue in the face, their leadership and that of the Prime Minister is responsible for the negative rating. It is foolish leadership to want to offer every baby mother $6,000 before election and don’t know whines going to pay for it. Most REAL leaders on learning on such economic downgrading will face the public an offer a sense of new direction so as to avert further discoveries. But this so-called Queen from Siparia almost always remain quiet and allow her goons to speak for her. Where is the leadership? She never was a leader and never will be a leader. What we need at this time is to seek the advice of respected economists and administrators to look at the economy, make recommendations and follow the advice of those who know better than her. That, at least is what a leader who is aware of her deficits will attempt to do in order to show that she is doing something. At this point in her administration no amount of blogging will be able to help her and her administration unless she drags the bull by it’s horn and confront the inevitable.

    • Jerry C. Hussain

      The Opposition Leader has no influence on the hands that go into our treasury or sign deals that are not in the citizen’s interest

  • Where the money gorn ah hear PNMites asking. Well take a look at what the Partnership had to deal with when they came to office.
    The PNM legacy that sucked money out the Treasury. Here is some of it.

    CLICO $25 BILLION
    Ministry of Housing $8 BILLION
    WASA $4 BILLION
    Outstanding VAT $2 BILLION
    Owed Contractors $2 BILLION
    Loan for Waterfront $2.7 BILLION
    Outstanding Fuel Subsidy $6 BILLION
    Loan for Tarouba Stadium $600 MILLION
    Loan for RACKET RAIL $500 MILLION
    Outstanding Wage Negotiations $9 BILLION
    World GTL $3.5 billion for nothing.
    Plus horrendous cost over runs.
    An example a Korean firm was building schools for $40 million, the Partnership built those schools for $32 million.

    Moody downgrade is not unusual. However all the fundamentals of a strong and robust economy is there. 70% of exports is gas NOT oil.

    • Jerry C. Hussain

      Who are you fooling? Gas revenue is peanuts next to oil. And yes you copied most of PNM bad ways …always distract the population of what you did or did not do. PROPAGANDA will get you nowhere. That’s more of the same for over 50 years. That song you are singing is no longer of interest to us. TELL US WHAT YOUR GOVERNMENT HAS REALLY ACCOMPLISHED. We remember your mandate in 2010 and now.

      • “TELL US WHAT YOUR GOVERNMENT HAS REALLY ACCOMPLISHED. We remember your mandate in 2010 and now.”—Jerry C Hussain.And this is only in the East West Corridor you nincompoop.

        Facts NOT Propaganda
        The following major projects have been done under the PP Government in The East West Corridor:
        1. UWI Costatt Campus – SANGRE GRANDE
        2. New Arima Hospital (under construction) – ARIMA
        3. Completed the Churchill-Roosevelt Highway Extension – ARIMA
        4. New Arima Police Station – ARIMA
        5. Valencia bypass Road (under construction) VALENCIA
        6. New Walkover – OROPUNE
        7. New Walkover – MALONEY
        8. St. Barbara’s Spiritual Shouter Baptist Primary School – MALABAR
        9. Nursing Academy – EL DORADO
        10. Tunapuna Promenade – TUNAPUNA
        11. Upgraded Tunapuna Market – TUNAPUNA
        12. National Tennis Complex (under construction) – TACARIGUA
        13. Churchill Roosevelt Highway/Uriah Butler Highway Interchange – GRAND BAZAAR
        14. Completion of the Aranguez Overpass – ARANGUEZ
        15. National Oncology Centre (under construction) – MT. HOPE
        16. Mango Rose Homework Centre – EAST PORT OF SPAIN
        17. Nelson Street Police Post – PORT OF SPAIN
        18. Diego Martin Highway Extension – DIEGO MARTIN
        19. Diego Martin Technology Centre – DIEGO MARTIN
        20. Chaguaramas Boardwalk and Recreation Facility – CHAGUARAMAS
        21. New D’Abadie Bridge (B1/23) – D’ABADIE
        22. New bridge B1/14 Churchill Roosevelt Highway – TRINCITY
        23. Creation of three lanes out of Port of Spain by building a third lane on Bridge at Sea Lots
        24. Creation of Roundabout at Lok Jack School of Business
        25. Repairs to the Blanchicheuese Road improving connection to Asa Wright Nature Center
        26. St Joseph River Bridge being reconstructed
        27. Valencia Stretch repaved along with several sections of Eastern Main Road as well as widening of CR HIghway into three lanes going East
        28. Upgrades to Hollis Main for an improved water supply along corridor
        29. Water projects to expand pipe borne supply 24/7 for all.
        30. Wastewater treatment plants in Matura, Arima, POS
        31. The reconstructed bridge 2/10 Toco Main Road

        • Jerry C. Hussain

          I need to educate you a little to get you to stop being a nincompoop. I do not like gutter people cluttering up my nation so take a listen and do me a big favor…put something of substance in your brain. It is NOT GOOD TO WASTE A BRAIN CREATED BY GOD. If I were your boss I would not want to give you a recommendation saying you work on this project and you did so on that project etc., even when the project was completed …that you were working on it… as has happened with your PP government. It is just a case of half truths covered with endless lies. Nevertheless, instead future prospective employers want to know what you accomplished in the project. What was your performance like in the project or what was your contribution and/or what was the worth of the project? What was the rate of return of the money/time invested in the project, was there a profit and to who in the society as it is a government project that we are talking about. Perhaps you can learn as professionals learn from a LLDB…yes a Lessons Learnt Data Base. I do not expect the UNC/PP has one as the lessons learnt in 1995-2000 are not realized in 2010-2015, it was a repeated case of more endless thievery.

  • What blame Kamla agenda nonsense , are you referring to Tman?
    Who de hell ,do you believe ,should be blamed for this economic fiasco,we found ourselves in-all of which took place under politically clueless Kamla watch?
    Let me guess-Eric Williams,George Chambers,ANR Robinson,Patrick Manning,and ET,si?
    If Kamla weren’t so busy dolling out state blubber ,to the ‘greedy,me -me ,gi me ,gi me ,dog with ah bone,’fellow members of your tribe ,UNC dominant,PP financial supporting cronies,or worst yet,did not waste the surplus she inherited in 2010,we could have become the jewel of the Caribbean-instead of the laughing stock.
    As to that equally ,over the top assertion, re “desperate” Rowley,here is de deal.
    We lived with desperate Basdeo,and his protege Kamla,in their quest, to become the first Male /female Hindustani ,T&T PM,and so ,we can certainly endure Dr Rowley,as he prepare to assume the post,as T&T ,7th PM.

    Get use to it,and if ‘you alze’can’t,then pack your doggie bags ,and run to Europe ,North America,or South Asia,if that’s your fancy!
    Trust me ,there would be 110,000 illegal immigrants,ready,and willing to quickly take your vacant places.
    When you are finish slurping on dem Maple leaf syrup ,that is obviously ,beginning to affect your thinking,grab a dictionary,or better yet ,inquire, from that cross country running ninia of yours ,as to ,what is the role of an Opposition Leader?
    The PM in waiting,is simply doing his job,unlike Basdeo,who used his time as Opposition Leader,to surf the internet,read newspapers,and doze.

    Maybe you and kind ,are finally convinced, that when de dust is settled,your Kamla,will turn out to be the worst PM,this country has ever seen.
    Alberta Canada my behind! Who cares ?
    Talk instead ,about Quebecois ,and their desperation to take all their oil ,and other natural resources,and kick selfish ,Elizabethan Anglophones,to the curb.
    Please don’t burn your Trini ghetto card ,as you might need it to reenter T&T,when White racist Canadian ,neo fascist,Far Right ,skin heads, comes knocking,with a view to take back their country from you Brown ,and Black cretins,they feel ,are spoiling their land.
    Who do these people think they are,folks?
    Wanna bet,this ungrateful bozo called Tman ,forgot who got his PM elected?
    No ,it was not Jack FIFA Warner,with his loot,but Kieth Rowley,who placed Patrick Manning’s head on a platter.
    Keep messing with members of ‘Afro Kinky head Nation,’but while so doing ,remember a tested ,and tried truism,that many learn to their great peril,the ‘HARD WAY.’
    ‘Beware of a man,with nothing to loose!’
    I love this land, Y tu?

  • Jerry C. Hussain

    I wonder if THIS SHAMEFUL AND DISGUSTING TRUTHFUL NEWS displaying A FAILED UNC/PP GOVERNMENT SERVING A WOUNDED AND DIVIDED PEOPLE IN A POOR THIRD WORLD ENVIRONMENT WILL GET US ANY JUSTICE IN THE WIDER WORLD STARTING WITH THE UN AGENCIES. YOU WILL NOTE THAT THIS T&T COUNTRY WAS CHEATED OUT OF THE VALUE OF THEIR NATURAL AND HUMAN RESOURCES OVER 50 YEARS NOW, BY THE FIRST WORLD COUNTRIES WHO CANNOT EVER BE BROUGHT BEFORE AN INTERNATIONAL COURT THAT SERVES THEIR ONLY INTEREST. Where really does THE BUCK STOPS or DOES IT STOP. I REALLY WANT TO KNOW IF PRESIDENT OBAMA AND HIS BUNCH OF CON ARTISTS OF FRIENDLY NATIONS REALLY CARE OF ANYONE BUT THEMSELVES. They raped my country and refugeed most of us who today cannot find ourselves outside our own countries. YES THE BIG FEEDS ON THE SMALL.
    Yes this is indeed A BIG BLOW and we still have a crooked government STILL to send into exile. We continue to feel displacement in our families, broken, separated especially from our country….most of them end up in the ghettos in North America struggling to survive as the certification process there says following the LMOs that allows us in, that our bar of experience in our country is far lowers than the bar in their country…yes only one of the many roadblocks we face. And we still have to stomach people like MAMOO and TMAN …the johnny come latelies who feel their time to steal has come. Yes we are NOW COUNTRY LESS. WE WAIT FOR GOD”S REPLY TO ALL OF THIS.

  • Jerry C. Hussain

    CLR JAMES, born in Tunapuna, (now a marginal seat) Trinidad, then a British Crown colony, James was the first child of Elizabeth James and Robert Alexander, a schoolteacher.[6] In 1910 he won a scholarship to Queen’s Royal College, the island’s oldest secondary school, in Port of Spain, and after graduating he worked there as a teacher; among those he taught was the young Eric Williams, who would become the first Prime Minister of Trinidad and Tobago. Together with Ralph de Boissière, Albert Gomes and Alfred Mendes, James was a member of the anti-colonialist “Beacon Group”, a circle of writers associated with The Beacon magazine, in which he published a series of short stories. A MAN TAKEN FROM OUR COUNTRY JUST LIKE US TODAY _ BANISHED INTO A DIFFERENT KIND OF SLAVERY. THE MORE THINGS CHANGE THE MORE THEY REMAIN THE SAME. THESE THINGS MAKE OUR COUNTRY VULNERABLE TO THE FOREIGNER WHO CAME TO OUR COUNTRY TO RAPE, STEAL AND LEAVE CHEAPNESS EVERYWHERE, ….SUFFERED US UNTIL WE PAY ATTENTION AND ROBBED US OF EVERY VALUABLE RESOURCE SINCE 1956. YOU KNOW IT IS FUNNY THAT AMERICA STILL CANNOT RESOLVE THEIR BIGGEST PROBLEM SINCE THE END OD SLAVERY THERE — CHECK BALTIMORE. BUT THERE IS THE FEELING THAT THE RICH THERE…THEY LIKE IT SO. IT SERVES THEIR PURPOSE. Nevertheless, they do not want us suffering this blow as we are the prop for their economic system successes over the years. BUT YOUR SINS ALWAYS COME BACK TO HAUNT YOU. CAREFUL MR OBAMA THOSE THUGS THAT YOU TALKED ABOUT ARE THE VERY PEOPLE LIKE YOUR ANCESTRY …CAME FROM BLACK AFRICA AND WERE DISPLACED IN WHAT IS NOW YOUR COUNTRY, USA. MY FRIEND GOD DOH SLEEP. THE DISASTERS WILL COME IN THE DEAD OF NIGHT LIKE IN NEPAL. FRACKING DID NOT COME FROM GOD. AGAIN GOD SAID IN THE GARDEN THERE IS GOOD AND THERE IS BAD. YOU WANT ME TO CHOOSE FOR YOU….HEED MY CALLS. THE GULF IS JUST ONE EXAMPLE OF EVIL GREED AND YOUR EVIL WAYS.

    • Jerry C. Hussain

      MR OBAMA …God did not send KATRINA (2005) and SANDY (2012). These are global warming issues just like the many fires from drought in USA and of course the TORNADOES THAT CONSUME YOUR COUNTRY EACH YEAR in the USA. Perhaps you should take a good look at the industry that your inner circles built in little Trinidad …look carefully where there is beach and land erosion in Trinidad and the other untold destruction our citizens are graced with from your greed. You should send your own people to check the equipment that make up this industry where particularly furnaces, boilers, turbines are built to use untold amounts of heavy hydrocarbon laden natural gas in an extremely inefficient manner exhausting tremendous amounts of unburnt COx and NOx gas into the atmosphere in the calm Gulf of Paria waters (forming acids and warming of the Caribbean sea over time) where the hurricanes grow huge and become very dangerous in character. Hurricane Sandy took a right angle turn for the east coast of USA while hurricane KATRINA headed towards the Gulf of Mexico. No one can track these destructive storms. God is not to blame for this….the arrogance of MAN is to blame. Our island is today continually threatened by earthquakes as your people interfere under ground into the sea bed through your seismic surveys that destroy all the fish breeding and rob us of food as your people make deals with our corrupt governments. My friend God doh sleep.

  • Jerry C. Hussain

    THE BIGGER BLOW CAME BEFORE THE 1800s. Quote “Although Spanish settlement began in the 16th century, the census of 1777 recorded only 2,763 people as living on the island, including some 2,000 Arawaks. The Spanish gave many incentives to lure settlers to the island, including exemption from taxes for ten years and land grants in accordance to the terms set out in the Cedula. In 1783, the proclamation of a Cedula of Population by the Spanish Crown granted 32 acres (129,000 m²) of land to each Roman Catholic who settled in Trinidad and half as much for each slave that they brought. Uniquely, 16 acres (65,000 m²) was offered to each Free Coloured or Free Person of Colour (gens de couleur libre, PEOPLE OF FREE COLOUR as they were later known), and half as much for each slave they brought. French planters with their slaves, free coloreds and mulattos from neighboring islands of Grenada, Guadeloupe, Martinique and Dominica migrated to the Trinidad during the French Revolution. These new immigrants establishing local communities of Blanchisseuse, Champs Fleurs, Paramin, Cascade, Carenage and Laventille. This resulted in Trinidad and Tobago having the unique feature of a large French-speaking Free Coloured slave-owning class. THIS VERY MUCH SO TODAY< LITTLE CHANGES HAVE TAKEN PLACE…..MOST OF US ARE STILL HILL PEOPLE.
    By the end of 1789 the population had jumped to over 15,000. By the time the island was surrendered to the British in 1797 the population had increased to 17,643: 2,086 whites, 1,082 free people of colour, 1,082 Amerindians, and 10,009 African slaves. By 1960, the population was 827,957 and included erroneously no Amerindians, unquote. THEY LATER KILLED OFF THE AMERINDIANS.
    YES Blanchisseuse, Champs Fleurs, Paramin, Cascade, Carenage and Laventille on the hills were the places where the mulattos and fellow slaves were allowed to be housed and serve their masters on the nearby acreage or plains to plant. Planting was not allowed on the hills in those days. This was the mark of dependency that still prevails today. When the Americans came they taught the trades to hill people (US) to further this same disposition. And the colonists after the abolition of slavery in the 1800s brought in stricter divide and rule or policies to rule us …same as we know that still pertains today. They never thought the other group would practice their very same ways they handed down on us. Hence the more things change the more they remain the same. The addiction became set ….in like drying concrete, properly cemented today. You know in America they practise ways to get the addicted to first admit to his addiction before he can be healed. I WONDER OFTEN TIMES WHY THEY DO NOT COME HERE AND ADMIT TO THEIR ADDICTION HERE AS WELL. YES THEY DESTROYED OUR SOCIETY LEAVING THEIR UNCLE TOMS,THE RECALCITRANT MINORITY AND OTHERS IN CHARGE TO DO THEIR BIDDING WHILE THEY REAP MOST OF THE BENEFITS BIG TIME. According to CRAZY, time will come when……..

  • In order to fully comprehend Moodys findings regarding the Trinidad and Tobago’s economy and production. We need to take an honest look at how they arrived at these conclusions that:

    1. Persistent fiscal deficits and challenging prospects for fiscal reforms.

    2. Decline in oil prices and limited economic diversification to weigh negatively on economic growth prospects.

    3. Weak macroeconomic policy framework given lack of a medium-term fiscal strategy; and inadequate provision of vital macroeconomic data.

    We must first admit that these conclusions were based PURELY on figures supplied by our government to these international credit rating institutions to bolster it’s (Trinidad and Tobago’s) own image and financial suitability. So, if the numbers supplied to these institutions were politically based, the experts looking and evaluating them ARE DEFINITELY NOT. They view the facts as presented by the Trinidad and Tobago government, considering known factors such as Trinidad is a producer of oil, gas and agriculture, who it’s trading partners are, who it buys from and what the government’s policies are regarding income and expenditure. So, if the information supplied to these ratings house were political, when they arrive at the laboratories where they are viewed apolitically the conclusions would DEFINITELY MATCH REALITY.

    “1. Persistent fiscal deficits and challenging prospects for fiscal reforms.”

    IT IS A KNOWN FACT THAT this government is yet to present and operate within the confines of what it earns. Therefore each and every budget presented to the public was DEFICIT. Our renowned Planner and thinker extraordinaire in the person of Bhoe Tewarie has explained to us that deficit spending is a strategy. He never explained what that strategy is/was but EVERY presented was in deficit. There is runaway spending on things that definitely did not bring financial returns to the government. What Moodys and S&P are saying is that in order to
    get out of the deficit spending mode, there must be REFORMS to correct those policies.

    “2. Decline in oil prices and limited economic diversification to weigh negatively on economic growth prospects.”

    Every Tom, Mary, Dick and Harrilal in this country understands that when the price of your main product goes down dramatically, you HAVE TO ALTER your spending ways. Kamla got rid of a potential money making venture when she destroyed the construction of the Aluminum Plant in LaBrea. The intent of that plant was in fact a diversified venture to ease on the dependency of oil. She destroyed the plans for a rapid rail system which would have eased the need for commuters to depend on using their vehicles to jam the highways and essential roads all over the country. She is yet to ease the flooding in the capital city to attract local investors and potential foreign investors. In every major sector of production such as NGC, Petrotrin and TCL, her management appointees are poor to weak.
    Diversification therefore is neither none of her concern or she does not know what to do.

    “3. Weak macroeconomic policy framework given lack of a medium-term fiscal strategy; and inadequate provision of vital macroeconomic data.”

    This is where Kamla is most vulnerable, weak and at a loss to have and implement defined strategies on how to make the economy work better. You can criticize Manning until you are blue in the face but one he had going for him is that he PLANNED FOR DEVELOPMENT WELL. In order to have a macroeconomic framework, there MUST first have people around you who possess entreprenurial acumen. They must be able to develop new ideas such as Manning’s use and subsequent marketing of natural gas.
    You must have people around you who can and does think ‘out of the box’. After five years in power you are still working with the paradigm of the previous administration and offered no new one except to institute racial referencing in ALL of your staffing. In life it has often been said that ‘you get what you pay for’. In other words, Kamla wanted monolithic ideas, or ideas that has similarity with her liking and she got that. A good manager ALWAYS entertain ideas that may not be conversant with his/her own thinking. So, because of this there is NO framework from which she can operate to show policies that can enhance production to bring in revenue.

  • Jerry C. Hussain

    THIS REPORT IS REALLY VERY TROUBLING……Central Bank hit over downgrade
    By \\\\\ Ria Taitt Political Editor
    Story Created: May 4, 2015 at 9:24 PM ECT
    Story Updated: May 4, 2015 at 9:46 PM ECT
    port of spain

    The latest Moody’s report points to and underscores the failure of the Central Bank to manage the monetary affairs of the country.

    This is the view of Opposition Leader Dr Keith Rowley and People’s National Movement (PNM) Senator Dr Lester Henry.

    Speaking at a news conference at the Opposition’s Leader’s office in Port of Spain on the Moody’s report which has downgraded Trinidad and Tobago’s credit rating from stable to negative, both men noted that the report took the “unusual” step of citing not only weak macroeconomic policy but also weak monetary policy framework.

    Said Rowley: “It (Moody’s report) cast aspersions on the Central Bank’s ability/inability to manage the monetary affairs of the country. That is a highly unusual development. Because fiscal management is a matter for the Cabinet…But the monetary issues are Central Bank operations and Moody’s in this downgrade is casting aspersions on the management of the affairs of the Central Bank. And this is a very worrisome development.”

    “Usually these agencies stick to (commenting on) the fiscal side,” Henry said.

    Yet Rowley said Government was trying to fool the population in thinking that this whole development (involving the downgrade) was not a big thing.

    Noting that the Prime Minister and minister were speaking about budget surpluses, Rowley said the Government was not paying its bills “so as to be able to erroneously report surpluses against a background of record budgets and record deficits”.

    “I was talking to a contractor/supplier recently who supplies a certain product used by many government contractors. And the supplier told me that he has in his company’s possession $13 million in cheques submitted to his company by small contractors working for the Government and those cheques were made out for material supplied and the cheques bounced because the contractors were making out these cheques in anticipation of being paid by the Government and the payments are not forthcoming,” Rowley said.

    Henry said the Government “by hook or crook” wanted to push the Phoenix Park IPO so that it could get additional revenues, which it had already budgeted for.

    Henry said it was likely that other downgrades would follow, because the international rating agencies tended to all move in the same direction, operating more or less like a “herd”. He said the downgrade would not only further erode international business confidence but domestic business confidence as well.

    Rowley pointed to previous Moody’s report — ‘Investor Service report’ dated May 23 2014 in which Moody’s had downgraded First Citizens Bank Limited (FCBL). Quoting from the Moody’s report, Rowley said: “Moody’s Investor Service has downgraded FCBL..to D+ from C-…The outlook has been revised from stable to negative. The bank’s long and short term local currency deposit ratings were also downgraded…from stable to negative…The downgrade reflects corporate governance concerns evidenced by the non-renewal of the mandates of the former chairman and three other directors…on May 12, 2014. While the Government maintains that there is no evidence of wrongdoing by any member of the board during the FCBL initial IPO…In Moody’s view the non-renewal reflects concerns the Government has regarding the actions of the former chief risk officer during the IPO process and the effect this may have on public confidence in the bank’s governance and oversight.”

  • Quite a fantastic day in my T&T folks,and so ,as a way of celebration,let’s sing this beautiful ditty ,by a much adored, Soca Princess.
    “Ahhhaaahhhh Bissasar,look how you have dem sweating nah boy..Dis is jam,ah soca tassa jam…old man Bissasar pull out he capra ,and dem jamming de soca..things warming up…every body start to bawl… Roll up de tassar,rip up de tassa… It was past midnight,everybody tight,still no end in sight,everybody jamming de soca ,with dem rival socal band ….,wine wine ,yes man wrap de tassa,oh beta …people from afar ,Penal and Couva..and de jamming de soca….ah section from Debe,started to play ,Indian lavway…jamming de soco…. Ali and Mustapha ,grab on to Jahindara ,and dey jamming de soca”
    Drupatee

    I luv it,and finally a Tassa /soca belly dance winedown ,right before the people ,on TV,so that they can decide ,who an jam better than who. No more stupid ,loud roadside truck,DJ play of Uncle Crazy,and others.No more Marshall Montano ,’one love,’ kumbaya,garbage ,while de slogans read-“don’t turn back the country to dem…..”,well,…..you savvy Trini center Nation blokes,get my drift.

    http://www.trinidadexpress.com/news/-PM-agrees-to-debate-with-Rowley-302504991.html?m=y&smobile=y

    ‘Me think,’Democracy is alive and well,in our T&T.Dem big industrial metropolis, ain’t have nada on we,hmmmmm?
    Ooooops,I take dat back!It’s a long over debate that’s on the table ,between Auntie K,and de PM in waiting,Dr.KR,whereby, they’ll attempt to discuss the pertinent issues of de day,and hopefully, give de exasperated voters ,an inkling,,as to who is the leader, more capable of moving our underachieving country forward,and or, lift it out of the pathetic, social quagmire,we appear to be stuck in-primarily due to the sub par leadership of ….well,who else ,but Kamla,and her corrupt ,PP goons.
    Hats off to you Kamla,for taking this bold step.
    We wish you well,in your efforts to take down the drapes ,at the PM residence.
    Way to go Dr Rowley!Essentially ,taking our politics to parts never traversed before.
    Can anyone imagine, the 2 bit actor /lawuer Basdeo Panday,agreeing to a debate with- heavens forbid -Papa Deffy Eric,or ANR Robinson,back when he was king of de Opposition hill?
    No,nunca ,Neyet,for that coward ,would have preferred to sell his two daughters,to Dr Rat,and criminal Islamist,Lennox Phillip,aka, Yasin Abu Bkar,before he ventured along such a loose /loose part,ennnt people?
    We know nepotistic Manning, would not agree to a debate ,with anyone ,but his clueless ,opportunist wife, Hazel.
    Smartman George Chambers ,would have ,most certainly,opted for a week in our Emperor Valley Zoo,blindfolded,and naked,with dem sex starved ,80 year old,hungry lions ,before agreeing to a TV debate,in his time.
    Thanks Dr KR,for leading the way.Hopefully de Siparia Queen ,won’t try to back out ,dis time ,while claiming laryngitis ,of her ‘two knees.’
    Hope ,I got that medical ailment right,or better yet,the body part,ehhh Dr Suraj Rambachan,de protector of his sacred female,cash cow,Kamla?

    http://www.stabroeknews.com/2010/archives/11/09/fazeer-mohammed-fired/

    Hey Dr Rowley,seeing that you are so influential,why not also demand ,that women adoring Muslim ,in former journalists,Fazeer Mohammed,be one of the panel questioners-if he is still alive ,and functional,after his career suicide?
    Long live the Republic of Tobag…ooops,…lo siento,T&T!
    I love this land, Y tu?

  • Standard & Poors credit rating for Trinidad and Tobago stands at A.

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