Jamaica’s financial position appears to be in the black after international credit agency Standard and Poor’s (SNP) raised the country’s sovereign currency debt rating from selective default to B minus.

The move by Standard and Poor’s this past week follows a debt-restructuring agreement between Jamaica and the International Monetary Fund (IMF). It comes in the wake of Fitch Ratings upgrading Jamaica's long-term foreign and local currency ratings.

“Future sovereign rating actions,” explained SNP in a statement, “will depend on our view of the government’s ability to benefit from interest cost savings, smoother debt amortization, and multilateral assistance to address its many fiscal rigidities and inefficiencies and to decrease its high debt burden”

The agency said Jamaica has suffered from sagging tourism and aluminum demand, but noted that it got a major boost when it recently completed a $1.27 billion loan agreement with the IMF.

Jamaica’s Ministry of Finance said the upgrades reflected the government’s aggressive policy actions. “The upgrade at this time sends a significant signal to international and local investors and will help in reinforcing confidence in the market for Jamaica's debt,” according to its statement.

In addition to the IMF loan, the World Bank on Tuesday approved a $200 million loan for Jamaica to support its comprehensive reform program in addressing fiscal and debt sustainability. The World Bank said the loan would support a series of measures to enhance fiscal and debt sustainability, increase the efficiency of public financial management and budgeting processes, and increase tax revenues through improved tax administration.

“Despite the severe impact of the global crisis, Jamaica remains committed to the longer-term reform agenda and has taken critical measures to advance key public sector reforms,” said Yvonne M. Tisikata, World Bank Director for the Caribbean.