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Wed, 08 February 2012

S&P downgrades Jamaica Print E-mail
Deteriorating international and local economic conditions have prompted international credit ratings agency Standard and Poors to lower its long-term sovereign credit ratings on Jamaica to ‘B-minus' from ‘B' or just below investment grade. S&P also lowered Jamaica's short-term ratings from ‘B' to ‘C' and forecasts a negative outlook for the island.

S&P noted the impact of the global recession on Jamaica's fiscal and external accounts - the two weakest areas of the island's credit profile.

Jamaica's real GDP declined by forty basis points last year and S&P projects further contraction of 2.5 percent in real terms for this year.

Moody's ratings agency last month also downgraded Jamaica's credit rating.

Although the rating agencies suffered serious credibility problems because of incorrectly listing poor grade debt instruments as A-grade in developed countries like the United States, their assessment of the risk profile of developing countries still holds credibility on the international markets.
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