Standard and Poor’s lowers Belize credit ratings

That strategy will have fewer and costlier options, thanks to news out of New York that Standard & Poor’s today significantly downgraded Belize?s credit ratings. According to an S&P release the nation?s long term foreign currency rating has been lowered from “B plus” to “B”, edging into the highly speculative category, while the long term local currency rating dropped from “BB minus” to “B plus”. On the short-term ratings, the foreign currency dropped from “B” to a near subterranean “C”, while the local side remained steady at “B”. In explaining the downgrades S&P analyst Olga Kalinina cited worsening external liquidity and the government?s inability to close the fiscal deficit. She pointed to Belmopan’s “high financing needs” and lack of success in placing the bond issue. She also cited “recent political friction and the disclosure of an alleged misuse of Social Security funds…which have further damaged investor confidence.” The prognosis was not any brighter as she warned of further downgrades if government did not clean up its act.