Fitch cuts Jamaica's sovereign outlook to negative

NEW YORK Fri Jan 18, 2013 10:36am EST

NEW YORK Jan 18 (Reuters) - Fitch cut Jamaica's sovereign outlook to negative on Friday, citing the country's financing troubles and eroded liquidity.

The rating agency also affirmed Jamaica's B-minus long-term foreign currency rating.

The outlook cut "reflects Jamaica's rising financing constraints in the context of elevated fiscal and external imbalances," Fitch said in a statement.

"The sustained erosion of the country's international liquidity position has sharply reduced the authorities' maneuver capacity to manage external and fiscal pressures, thereby increasing the urgency of reaching a new agreement with the International Monetary Fund in the near term."

Moody's Investors Service rates the country B3 with a stable outlook; Standard & Poor's rates Jamaica B-minus with a negative outlook.

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