"Default" - it's the ugliest word in global finance and today, that's how Standard and Poor's described Belize's fiscal position. Standard and Poor's has revised its rating on Belize from "CC/C" which was the lowest in the region, to "selective default." That's rock bottom and S&P says it comes after Belize announced its bond exchange yesterday.
And while the report is stern, there is encouragement. It says that, "when the debt restructuring is complete, S&P will revise its ratings (to reflect) a forward looking assessment...most likely in the B category." That's a huge plus for Belize's money managers, because it expresses confidence that the bond exchange will succeed, and promises a much-improved rating when it does.
The new bond offered in exchange for all existing bonds will be presented to the House of Representatives tomorrow. Also on tap for the House is another US$25 million in quick-cash bailout money from the Venezuelan government.
Read the S&P Release
