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S&P lowers Belize’s credit rating to selective default

Published: Thursday August 23, 2012 | 10:37 am Comments 0
Belize Prime Minister Dean Barrow - File
Belize Prime Minister Dean Barrow - File

International Credit Rating Agency Standard & Poor's (S&P) has lowered its foreign currency sovereign credit ratings on Belize to selective default after the country failed to make a US$23 million debt payment.

The Wall Street-based firm said on Wednesday that Belize missed the coupon payment on a US$547 million bond when it came due on Monday.

“The government had previously announced that it would not pay the US$23 million interest payment due on August 20,” said S&P in a statement. “We consider the failure to pay the accrued interest a default under our criteria.”

S&P said the US$23 million amounts to about six per cent of government revenues and one per cent of gross domestic product for the tourism-dependent country.

CMC

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