Business Content Jamaica- Bringing Jamaican Business News To Your Desktop

S&P’s downgrade comes amid what it describes as Jamaica’s vulnerable fiscal profile, combined with difficult financing conditions and the possibility of a “distressed debt exchange.”

However in a statement August 5, 2009, Finance Minister Audley Shaw  said S&P ignored  several positive economic developments that have taken place recently and emphasized that Jamaica does not intend to pursue any “distressed debt exchange” – a euphemism for debt forgiveness.

Shaw said the positive economic developments included significant over-subscription of locally-issued debt; sharp reductions in market-determined interest rates and tightening of the spreads of Jamaican Government-issued foreign currency denominated debt traded on the international capital markets.

In the meantime, the Jamaica Securities Dealers Association described S&P’s downgrade as “premature and unwarranted given recent developments that are slated to improve and not worsen sovereign risk.

The Jamaica Securities Dealers Association is a grouping of licensed private sector companies and individuals that deal in securities trading.

Some critics argue that international credit ratings agencies played a major role in the sub-prime mortgage crisis in the United States that triggered the international financial meltdown.

They says rating agencies such as Fitch, S&P and Moodys were active participants in the structuring of  the toxic mortgage-based instruments that fed the global financial crisis and from which they profited handsomely.

Share / Save Email Bookmark FacebookDeliciousGoogle BookmarksMySpaceYahoo BuzzStumbleUponBeboWordPressOrkutEvernoteStumpediaPosterousMSDNExpressionTipdPlurkYahoo MessengerMozillacaTypePad PostMixxTechnorati FavoritesCiteULikeHemidemiInstapaperXerpiWinkBibSonomyTailrankKledyMeneameBookmarks.frNewsVineFriendFeedPingProtopage BookmarksFavesWebnewsPushaSlashdotAllvoicesImera BrazilLinkaGoGounalogDiglogTumblrCurrentSpurlOneviewSimpyBuddyMarksViadeoWistsBackflipSiteJotDZoneHyvesBitty BrowserSymbaloo FeedsFolkdNewsTrustPrintFriendlyTuenti Google GmailHotmail TwitterDiggGoogle BuzzRedditMessengerYahoo BookmarksMister-WongGoogle ReaderXINGNetvibes ShareStrandsDailyMeTechNetArtoSmakNewsAIMIdenti.caBlogger PostBox.netNetlogShoutwireJumptagsFunPPhoneFavsNetvouzDiigoBlogMarksStartAidKhabbrYoolinkTechnotizieMultiplyPlaxo PulseSquidooBlinklistYiGGSegnaloYouMobFarkJamespotTwiddlaMindBodyGreenHuggNowPublicLiveJournalHelloTxtYampleLinkatopiaLinkedInAsk.com MyStuffMapleConnoteaMyLinkVaultSphinnCare2 NewsSphereGabbrTagzaVodPodAmazon Wish ListRead It LaterEmail Yahoo MailAOL Mail Send from any other email service: Any email     Powered by AddToAny

Comments (0)

Subscribe to this comment's feed

Show/hide comments

Name

Email

Headline

Comment

smaller | bigger

Subscribe via email (registered users only)

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment