- Whole neighborhoods razed by Oklahoma tornado that killed 24 |
- Analysis: Some Republicans see new scandal in Sebelius fundraising
- Convicted U.S. killer Arias would join tiny death row group
- Drop in U.S. underground water levels has accelerated -USGS
- Israel fires back at Syria after gunshots at its troops
Moody's cuts Belize credit to Caa, deeper into junk
NEW YORK, June 1 |
NEW YORK, June 1 (Reuters) - Moody's Investors Service cut Belize's sovereign foreign currency credit rating to C from Caa on Friday, moving it even deeper into junk status and citing a deteriorating ability and willingness to pay its external debt.
"Belize faces weak short- to medium-term growth prospects, accumulating contingent fiscal liabilities and a questionable outlook for debt sustainability," Moody's said.
In April, a Belize official told Reuters the government is considering options to restructure a $550 million 'super bond' before the next payment is due in August.
"Moody's expects that the government will proceed with a pre-emptive debt restructuring this year. The restructuring will be focused on the $547 million Superbond which accounts for about half of the government's debt and is itself the result of a distressed debt exchange completed in 2007," Moody's said.
The outlook is set at developing, the firm said in a statement, adding it depends on what the government discloses concerning the terms of a potential debt restructuring.
The government's ability to service its debt is likely to weaken because of declining oil-related revenues and rising fiscal liabilities following the nationalization of Belize Electricity and Belize Telecommunications, the firm said.
Belize is a small Central American nation of approximately 313,00 people.
Standard & Poor's lowered Belize to a CCC-minus rating in March with a negative credit outlook on the nation's foreign sovereign currency debt.
Moody estimates the likelihood of a default on the foreign credit as higher than that of the domestic debt, which accounts for less than 20 percent of total government debt.
- Tweet this
- Share this
- Digg this