S&P cuts Belize

S&P said it lowered its long-term foreign and local currency sovereign credit ratings on Belize to CC from CCC+.

“The downgrade reflects heightened risk of a distressed debt exchange or missed coupon payments on the U.S. dollar bonds due 2034. The next coupon payment is due May 20, 2021. Despite short-term relief provided by recent amendments to the terms of the bonds, wherein quarterly interest payments due from Aug. 20, 2020, through Feb. 20, 2021, were capitalized, Belize faces a tough fiscal position and pressured external liquidity, which, in our opinion, could hamper its capacity and willingness to meet its coming financial obligations,” S&P said in a press release.

The outlook is negative.

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