S&P Global Ratings has raised the Government of Guam’s long-term rating on its general obligation debt to “BB” from “BB-,” citing improved financial performance and fiscal position.
The one-notch upgrade reflects measurable improvements compared with prior years, according to a news release issued Friday. S&P’s ratings are used by investors and financial markets to assess creditworthiness.
Gov. Lou Leon Guerrero called the upgrade “welcome news but not a surprise.”
“We laid the groundwork deliberately and methodically, taking into account the 21st-century pivot that is underway in our economy,” Leon Guerrero said.
Lt. Gov. Josh Tenorio said the independent evaluation affirms that Guam’s financial footing has strengthened.
“When objective financial experts look at the numbers, the verdict is consistent: Guam’s financial footing has improved—and our job now is to protect that progress for our families, our businesses, and our future,” Tenorio said.
According to the administration, recent budgets have emphasized structural balance, transparent budgeting and stronger reserve levels to promote fiscal stability.
While noting the progress, officials said the upgraded rating also signals that gains remain fragile and require continued fiscal discipline and sound financial management.
An improved credit rating can affect borrowing costs and investor confidence, though officials acknowledged that sustained commitment to fiscal responsibility will be necessary to maintain or further improve Guam’s standing.