S&P cuts Grenada

Standard & Poor's said it lowered its foreign currency sovereign credit ratings on Grenada to SD from B-/B.

At the same time, the agency said it lowered its local currency sovereign credit ratings on Grenada to CCC+/C from B-/B. The outlook on the long-term local currency rating is negative.

"The downgrade to SD follows the government's failure to pay the coupon due Sept. 15, 2012, on its $193 million bond due in 2025," said S&P credit analyst Richard Francis in a news release.

In its Sept. 12 statement to bondholders, the government of Grenada stated its intention to use its best efforts to pay the coupon within a 30-day grace period. However, S&P considers an obligation in default unless payment is made within five business days of the due date, regardless of any grace period.

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