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Aug 13, 2020

Standard & Poors Reduces Belize’s Foreign Currency Rating to SD

There is a downgrade to Belize’s credit rating. According to Reuters, S and P Global ratings reduced the country’s foreign currency ratings to SD from a CC/C. This is due to the proposed capitalization of scheduled payments on the five hundred and twenty-six Eurobond which matures in 2034; payments for which the government told bondholders it could not meet due to the pandemic. According to S and P, an ‘SD’ rating is assigned when the agency believes a borrower has “selectively defaulted” on a specific issue or class of obligations but will keep meeting obligations on other issues or classes of obligations in a timely fashion.  Earlier this week, government said that eighty-two percent of bondholders had agreed to the amendments in the consent solicitation statement. Interest payments due on August twentieth, November twentieth and February twentieth 2021 will be capitalized.  Government will be required to hold a quarterly call to update investors on the the economic and financial developments.

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