S&P lowers Belize

Standard & Poor's said it lowered the long-term foreign-currency sovereign credit rating on Belize to CC from CCC-, along with the foreign-currency issue rating on its $546.8 million bond due in 2029 to CC from CCC-.

S&P also said it affirmed the C short-term foreign-currency and CCC+/C local-currency sovereign credit ratings on Belize. The 4 recovery rating and B- transfer and convertibility assessment remain unchanged.

The downgrade follows news that the government will not pay the $23 million semiannual coupon due on Aug. 20 on its $546.8 million bonds due 2029, S&P said.

The interest rate steps up to 8½% on the accrued interest due this month, the agency said.

In March, the government of Belize initiated a review of its external public debt, S&P said. On Aug. 8, the government published indicative restructuring scenarios.

Under the agency's criteria, a missed payment or an exchange is viewed as distressed and constitutes a default, S&P said.

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