Moody's drops Air Jamaica to Caa1

Moody's Investors Service said it lowered the corporate family and senior unsecured debt ratings of Air Jamaica Ltd. to Caa1 from B2, and changed the outlook to negative.

The debt rating reflects the government of Jamaica's unconditional and irrevocable guarantee of the rated debt obligations of Air Jamaica.

The action on Air Jamaica's debt follows the downgrade of the Government of Jamaica's local- and foreign-currency bond ratings to Caa1, the agency noted.

The government has been unable to reach a timely agreement with the International Monetary Fund for a standby facility, despite lengthy negotiations, Moody's said.

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