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Apr 20, 2020

Standards & Poor Lowers Belize’s Credit Ratings

In other news of a financial nature, Belize’s ratings on Standards and Poor, have taken a hit.  The agency has lowered the credit ratings from a “B” negative to a “C.C.C.’’ all due to the effects of the COVID-19 pandemic. As you know the tourism industry has come to a screeching halt with airline and cruise ship travel suspended.  S and P also states that larger fiscal and external financing needs, lower international reserves and increased pressure on its vulnerable healthcare system are likely to weigh on the government’s ability and willingness to meet its debt service requirements this year. The negative rating signals that there will be increased risks to timely debt payment in respect of the U.S. thirteen million due in August for the superbond and this scenario could lower even further if there is non-payment of commercial obligations or if Belize were to enter into negotiations to restructure its commercial debt. But the rating could be revised to stable in the next six to twelve months if Belize successfully bolsters its external liquidity by securing official or multilateral financing, allowing it to cover upcoming interest payments on its external bond.

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