S&P changes Aruba to negative

S&P said it revised its outlook on Aruba to negative from stable.

The agency also affirmed the BBB+/A-2 long- and short-term sovereign credit ratings on Aruba.

In addition, the agency affirmed the BBB+ transfer and convertibility assessment.

“The negative outlook reflects the at least one-in-three possibility of a downgrade within the next two years based on the risk of a worsening government debt burden, potentially resulting from poor economic growth or slippage from the government's fiscal correction targets,” S&P said in a news release.

“Net general government debt, which includes liquid assets held by the public-sector pension fund, is likely to exceed 26% of GDP in 2018, up from 17% in 2013.”

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