Analysts at the rating agency Standard and Poor's have also been keeping an eye on government's assets and their conclusions are not good news. An advance copy of a Standard and Poor's country report on Belize that was today posted on freebelize.org shows that Belize's sovereign rating has been downgraded again. The long-term foreign currency rating which was an B- has now been ratcheted down to CCC. And the outlook on the ratings remains negative.
It might not mean much to most of us, but to the international institutional investor community, it just about makes Belize bonds junk. Standard and Poor's analysts point to an "increasing risk of default" and inability to secure international financing. Worryingly, the report notes that what's referred to as the financing gap which is almost 6 times the available reserves, is one of the highest among all countries rated by Standard and Poor's. The report warns that the ratings may fall further if government does not increase the foreign reserves or if it does not receive the expected proceeds from the sale of BTL shares.
The summary advance report can be found by clicking here.
