Moody’s downgrades Suriname

Moody’s Investors Service said it downgraded the long-term issuer and senior unsecured ratings of the government of Suriname to B3 from B2 and changed the outlook to negative from stable.

“The downgrade to B3 reflects the significant deterioration in fiscal metrics as larger-than-expected fiscal deficits in 2018 and 2019 have led to a sustained rise in government debt to 75% of GDP at the end of 2019. The downgrade also reflects heightened liquidity and external risks,” Moody’s said in a press release.

The negative outlook reflects Moody’s view that risks are skewed to the downside, the agency said.

“In the absence of fiscal consolidation, persistent large fiscal deficits in 2020-21 will generate potential funding risks. Moody’s sees persistent pressures on the exchange rate, increasing the likelihood that an abrupt correction could further erode debt metrics and Suriname’s overall credit profile,” Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.