Fitch rates Aruba bonds BBB

Fitch Ratings said it assigned a BBB rating to Aruba's $45.8 million 12-year bond issue. The rating is in line with Aruba's BBB foreign-currency issuer default rating, on which the outlook is stable.

The agency said Aruba's ratings are supported by its relatively high per capita income of over $20,000, which is well above the BBB median of $5,496; its market-friendly institutional environment, based on a well-functioning legal system, rule of law and legally protected rights; and its continued political and social stability.

Aruba's rating weaknesses are structural weaknesses in its public finances, including a high level of budgetary rigidity and continued reliance on arrears to suppliers and the broader public sector as a source of financing; its relatively high public debt burden at 47% of GDP; and its relatively low international liquidity in the context of its narrow economy, Fitch said.

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