Moody’s lowers Suriname

Moody’s Investors Service said it downgraded the long-term issuer and senior unsecured ratings of the government of Suriname to Caa3 from B3.

“The downgrade to Caa3 reflects a much higher probability of a distressed exchange or default on Suriname’s market debt than expected at the time of the April downgrade to B3 negative as a result of the economic and financial shock the country is experiencing due to the coronavirus outbreak. Spending pressures related to the coronavirus and increased financing needs have led to a severe tightening of financing conditions. The government has already issued a consent solicitation to defer payment of principal that was due on June 30, which Moody’s expects will be granted,” Moody’s said in a press release.

Concurrently, Moody’s lowered Suriname’s long-term foreign-currency bond to Caa2 from B1 and the local-currency bond rating to Caa1 from B1.

The outlook remains negative.

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