NEW YORK, June 14 Rating agency Standard &
Poor's on Friday revised Curacao's sovereign credit outlook up
to stable from negative, citing the government's steps to
improve its financial position such as reforms to health care
and public pensions.
The rating is currently A-minus.
"The government raised health care and general pension
premiums, as well as raised the retirement age to 65 from 60. As
a result, we expect the deficit in the general pension system to
gradually return to surpluses over the next decade," S&P said in
S&P said it expects the reforms will gradually improve the
government's fiscal position and "the gross general government
debt burden will gradually decline."
In addition, increases in luxury goods sales tax, property
tax and measures to cut the government workforce gradually will
help improve the fiscal position.
The firm expects these reforms to lead to a 2 percent
contraction in the economy in 2013, but general government debt
to stabilize at around 30 percent of gross domestic product.
Curacao is not rated by either Moody's Investors Service or