The ratings agency, Standard and Poor's, says the outlook for French Polynesia is stable but it expects a budgetary improvement as a result of last month's tax reforms.
The agency says the BB+ rating comes after a decade of political instability, weak revenue and expenditure management, and very unfavourable economic conditions.
It cites a three percent GDP decline from 2008.
The agency says since the election in May, there is a stable political majority and a willingness to restore public finances.