Blame for Jersey and Guernsey downgrades pinned on Brexit

By Kirsten Hastings, 17 Feb 16

Jersey and Guernsey have both blamed a possible ‘Brexit’ for Standard & Poor’s recent ratings downgrade despite S&P pointing to the G10’s rising focus on low-tax regimes and the impact that may have on their financial services sectors as the driving force behind its decision.

Jersey and Guernsey have both blamed a possible ‘Brexit’ for Standard & Poor’s recent ratings downgrade despite S&P pointing to the G10's rising focus on low-tax regimes and the impact that may have on their financial services sectors as the driving force behind its decision.

Ongoing dialogue

Geoff Cook, chief executive, Jersey Finance, said: “Our AA rating is still one of the highest ratings available and reflects the enduring strengths of our finance industry.

“Regarding ‘Brexit’, Jersey has an ongoing dialogue with EU institutions and the UK Government to ensure the island’s interests in Europe are promoted fairly and effectively. Far from detracting from the EU, the island adds value through Jersey funds investing in the continent and has not been adversely affected by its non-EU status over the last 50 years.

“We have a robust track record of adapting to new regulation and as a result are more than well-placed to meet any future challenges arising from regulatory complexity,” Cook said.

Neither St Pier nor Cook expect the ratings change to impact their respective economies or economic performances.

The credit rating process is repeated annually with an update every six months.

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Tags: Guernsey | Jersey | S&P