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Feb 17, 2012

Moody’s Investors Service lowers Belize Credit Rating

Going into the election, the Superbond has become a major issue that both political parties are flogging. A few days ago, Standard and Poor’s, lowered the country credit rating to CCC plus. Tonight, another agency, Moody’s Investors Service lowered the credit rating one notch further into junk territory and there is a possibility that it could plunge even lower. Moody’s cited increased concerns of another possible debt restructuring. The credit status now stands at a historical low of Caa1, which denotes highly speculative credit. According to Moody’s, the recent statement from the Prime Minister suggested that the current government will want to modify the original conditions of the five hundred and forty-seven million dollar Superbond, which is equivalent to half of the government debt. Moody’s says that “Superbond debt service has been rising due to coupon step-ups and will continue to increase once the debt begins amortizing in 2019. This will put further pressure on Belize’s generally weak public finances. The coupon on Belize’s Superbond began at four point two-five percent and is scheduled to jump to eight point five percent later this year.” Managing increased debt service payments, says Moody’s, poses significant financial challenges for Belize, which already faces weak economic growth prospects and expectations of declining oil royalties—a key source of government revenue.

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2 Responses for “Moody’s Investors Service lowers Belize Credit Rating”

  1. Storm says:

    The credit rating was lowered as a DIRECT RESULT of Hon. Dean Barrow’s stupid public remarks that suggest he would renege our promise to pay the Superbond.

    WOULD YOU LEND MONEY TO SOMEBODY WHO SAYS HE IS LOOKING FOR A WAY TO WEASEL OUT OF PAYING YOU BACK?

    Belize owes the money. We elected the crooks who got us into debt, so we are responsible to pay it back. THERE IS NO FREE LUNCH. As a result of our own stupidity, nobody else’s, we have indentured our children and grandchildren to pay off money that was stolen and wasted by others. How do you feel about that now, when we are facing the consequences?

    Those are the facts. IS BELIZE SMART ENOUGH TO LEARN A LESSON FROM OUR OWN BAD JUDGMENT IN THE PAST? I pray so.

  2. Moses says:

    I clearly remeber COLA holding a press Confrence at the Biltmore Plaza to warn of the impact the statement can have internationally and many people said we have a problem with every thing, now see did not have to want to say we told you so. It take intellegent people to understand certain thing and bring information to those who might not understand, but because its a tradition in our country to play politics with every thing we suffer the consequences well teh poor does…

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