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Nov 22, 2011

Standard & Poors rating for Belize from B to B-

There’s bleak news to report on the financial front. Belize’s foreign currency credit score was downgraded by Standard and Poor’s in early August following government’s acquisition of the Belize Electricity Limited. The country’s credit rating went down from a B to a B minus because, according to S&P, the nationalization added to the country’s fiscal problems. The only silver lining then was that S&P’s outlook for the future of Belize’s finances was stable. Well, that changed today when S&P, revised its outlook from stable to negative and confirmed that Belize’s rating is a B minus bordering on a C. The international credit rating agency cites diminishing political incentives to service the country’s external debt as the reason for the negative outlook. It notes that “rising crime, public-sector wage pressures and budget constraints may reduce political incentives to pay debt service.” Other factors listed by S&P included Belize’s external imbalances, weak political institutions and the large government debt burden. The report ends saying that “A growing number of Belize’s public-sector companies have exposed contingent liabilities in recent months, putting more pressure on the country’s balance sheet.” In June, Moody Investors also lowered Belize’s credit rating to a B. The ratings heavily influence foreign investment and could mean higher interest rates when Belize needs to borrow on the capital markets.

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5 Responses for “Standard & Poors rating for Belize from B to B-”

  1. Eye In The Sky says:

    99% of Belizeans have No Idea what this means.

  2. Goosie says:

    @Eye In The Sky, HAHA!

    Bottom line: Belize is experiencing financial difficulties! (;

  3. Punkgial says:

    With all what’s going on in Belize if you are an investor would you invest in Belize? I dont think so because it will be very risky to invest you monies in Belize,crime is high robbery is sky high and the GOB is so corrupted that no investors will put foot in Belize until the situation is under control. Helping the 24percent unemployment we need jobs and to create jobs we need investors and that will help Belize increase there credit rating through the S&P.

  4. Indian woman says:

    It means,,,,,,,,THINGS BAD. VERY VERY BAD> .Thing is that most Belizeans are too stupid to understand that they need to get those criminals out of the government.They will wait until Belize turn into Haiti………

  5. belizean says:

    belizean are not stupid to understand it is the police mens if u want u can come indian woman

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