Belize's already flailing half a billion-dollar bond offering looks tonight much closer to failing. That's with the news that International rating agency Standard and Poors has yesterday downgraded Belize's rating from stable to negative.
Standard and Poors' analysts point to an overall deficit that is not meeting targets for reduction. Those analysts also point to public sector debt which is now 98% of GDP, up from 75% in the year 2000, and that financing needs will amount to 436% of reserves in 2004, up 100% from last year. The Standard and Poors' report warns that if government doesn't tighten up its finances even more, the ratings could fall again. It advises that "firm resolve on the fiscal front and adept debt management on the external side" is required to keep those ratings form slipping further.
This news augurs poorly for the embattled bond offering which did not float by its initial June 30th deadline. Government has postponed that offerings, it says, until market conditions are more stable.