Belize is one of the countries whose ratings have been revised to negative.
From NAN Business Editor
News Americas, NEW YORK, NY, Weds. April 22, 2020: Four Caribbean countries have received a rating revision to “negative” as all eyes are quickly on the economic impact of the COVID-19 pandemic.
S&P Global Ratings revised its outlook from stable to Aruba, Belize, Jamaica and the Dominican Republic – all tourism-dependent nations – to negative.
The rating agency said the decision was made because “the sudden halt to tourism in these countries will lead to unprecedented falls in GDP, budget balances and foreign exchange inflows.”
“These states are among the most tourism-dependent countries in the world and rely heavily on international visitors, mostly from North America, to contribute to their GDP, tax revenues and foreign exchange inflows,” the report said.
And with S&P forecasting a 60-70% decline in Caribbean tourism from April to December, the largest declines were in the second and third quarters.
Aruba is now rated BBB + / Negative / A-2 by BBB + / Stable / A-2. Belize is now CCC / Negative / C of B- / Stable / B; The Dominican Republic is BB- / Negative / B from BB- / Stable / B and Jamaica is B + / Negative / B from B + / Stable / B.
S&P said it could add more countries to the list, but “all future rating actions will be based on evolving assumptions about how the pandemic will spread, the impact on tourism, the timeliness and adequacy of each country’s policy response depend on lying economy and political resilience of the country. “