Belize’s ratings on the global scale have been downgraded by S&P Global Ratings. S&P recently made revisions on several tourism-dependent countries including Belize and subsequently gave a CCC rating on the country’s long term foreign and local currency sovereign credit. Belize was at a B-minus with a negative outlook status prior to this revision. Belize’s ratings were also downgraded from a B to C on its short term foreign and local currency ratings. In the category of Belize’s transfer and convertibility assessment, the ratings went from a B-minus to a CCC-plus. While the report acknowledges the fight of the Coronavirus pandemic which has led to a crash in the tourism sector with a heavy impact on the country’s economy, S&P cited other factors contributing to this downgrade. S&P wrote, quote, “Belize’s creditworthiness is constrained by institutional weaknesses that include a track record of the poor capability to maintain sustainable public finances across administrations.” End of quote. The rating agency estimates a contraction of 4% in 2020 and net general government debt at 97% of GDP. The rating agency’s base forecast for tourism in the Caribbean and North Atlantic involves a slump of 60%-70% in the final three quarters of 2020 compared to a year ago, significantly impacting economic growth and fiscal accounts this year. Other countries assessed were Jamaica, the Dominican Republic, Aruba, and the Bahamas.
S & P downgrades Belize’s ratings in light of its tourism decline
Belize’s ratings on the global scale have been downgraded by S&P Global Ratings. S&P recently made revisions on several tourism-dependent countries including Belize and subsequently gave a CCC rating on the country’s long term foreign and local currency sovereign credit.
