“The recent removal of Cuba from the list of countries that the US considers to be sponsors of terrorism is credit positive for the sovereign,” the credit rating agency’s release stated.
Cuba’s credit rating remains at a low speculative grade of Caa2, but the delisting could boost funding from international financial institutions and development organizations, the release added.
The US government’s decision to normalize relations with Cuba has spurred a growth in tourism. Increased financing could enhance Cuba’s tourism infrastructure and significantly increase economic activity, Moody’s said.
The process of normalization will boost the already substantial increase in US visitors to Cuba, which began with the softening of travel restrictions in January 2015, according to the release.
In late May, the US government removed Cuba from the US State Sponsor of terrorism List.
Cuba was put on the terror list in 1982 for providing safe haven to members of the Basque Fatherland and Liberty as well as the Revolutionary Armed Forces of Colombia (FARC).
The Obama administration announced its intention to normalize US-Cuba relations in December 2014. US officials are negotiating with Cuba to re-open the US Embassy in Havana and the administration’s actions have opened up greater travel and trade in some sectors.
However, a full trade and travel embargo on the island nation will remain in effect until lifted by the US Congress.
