The Office of the President is pleased to announce that Fitch Ratings has upgraded Seychelles’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB’ from ‘BB-’, with a Stable Outlook. This marks an important milestone in the country’s ongoing efforts to strengthen its economic resilience and fiscal position.
Key Drivers of the Upgrade
Fitch highlighted several factors that underpinned the rating improvement:
• Enhanced Policy Buffers: Strong macroeconomic management, including the commitment to a floating exchange rate and prudent fiscal policies, has strengthened Seychelles’ ability to withstand external shocks, particularly in the tourism sector.
• Improved Fiscal Position: The country recorded a budget surplus in the first half of 2025, reflecting higher tourism revenues, disciplined expenditure, and increased capital investment.
• Debt Reduction: Government debt-to-GDP is projected to fall to 57.5% by end-2025, continuing a downward trend that reinforces fiscal sustainability.
• Stronger Reserves: International reserves are projected to reach the equivalent of four months of current external payments by end-2025, providing a vital buffer against external vulnerabilities.
• Robust Economic Growth: Real GDP growth is forecast at 5.8% in 2025, driven by buoyant tourism arrivals, increased processed fish production, and sustained infrastructure investments.
President Ramkalawan’s Remarks
Welcoming the upgrade, the President of the Republic of Seychelles, Mr. Wavel Ramkalawan, stated:
“This positive development is a testament to our nation’s resilience, discipline, and collective commitment to prudent economic management. It reflects the hard work of our people, our institutions, and the steadfast partnership with international financial bodies. Seychelles will continue to build on this momentum, safeguard fiscal stability, and create opportunities for sustainable growth and prosperity for all Seychellois.”
While Fitch underscored the country’s strong governance and resilience, it also noted the importance of sustaining reforms and addressing vulnerabilities linked to external shocks and the economy’s reliance on tourism. The Government remains committed to deepening structural reforms, strengthening economic diversification, and ensuring that gains translate into improved livelihoods for citizens.
Source: Seychelles - Rating Action Report
www.fitchratings.com
