Standard & Poor?s issues caution on credit rating

With a badly needed bond issue still in limbo, Belize?s international credit rating took a hit today, as Standard & Poor?s rating service revised its long term outlook from ?stable? to ?negative?. Reasons given for the caution on Belize?s ?B plus? foreign and ?BB minus? local currency ratings are ?increasing challenges in tightening the government?s fiscal stance, coupled with mounting external liquidity pressures.? More specifically, the report expresses doubt that government can meet its budgetary targets and cites rising debt to G.D.P. ratios, which are predicted to reach ninety-eight percent by the end of 2004. The lowering of the outlook is essentially a warning that unless government acts with resolve in its tax collection and debt management, the country?s ratings could eventually be lowered.