Fitch downgrades Suriname

Fitch Ratings said it downgraded Suriname’s long-term foreign-currency issuer default rating to C from CCC.

The downgrade reflects Fitch’s view the government of Suriname has begun a distressed debt exchange for its 2023 bonds, which it also downgraded to C, the agency said.

Suriname entered a 10 calendar day grace period on $15.6 million principal and a 30-calendar day grace period on $8 million interest coupon due June 30 on its $125 million 2023 bonds. In addition, on Wednesday, the national authorities issued a consent solicitation seeking to defer Tuesday’s principal payment on the bonds as well as changes to other terms of the notes. The stated response period for the consent solicitation closes July 8, Fitch said.

“Fitch views the risk of a broader restructuring of foreign currency debt as high, reflecting the government’s high government debt burden, acute shortage of foreign currency and distressed financing conditions. Therefore, Fitch is downgrading the issue ratings on Suriname’s 2026 notes to CC,” Fitch said in a press release.

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