Republic Of Suriname Local Currency Rating Lowered To 'SD' From 'CC'; Foreign Currency 'SD' Rating Affirmed

The government of Suriname has announced that it is in talks with domestic commercial creditors to conduct a liability management operation to rationalize its domestic debt. At the same time, the government said that it has arrears on outstanding local currency domestic commercial debt instruments. In line with our ratings definitions, we are lowering our long- and short-term local currency sovereign credit ratings on the Republic of Suriname to 'SD' from 'CC' and 'C', respectively. We are also affirming our 'SD' long- and short-term foreign currency sovereign ratings on the country and our 'D' issue-level ratings on Suriname's foreign currency debt. TORONTO (S&P Global Ratings) June 3, 2021--S&P Global Ratings said today it lowered its long- and short-term local currency

...Key rating factors Score Explanation Institutional assessment 6 Weak political institutions are resulting in an uncertain policy environment in periods of stress resulting is a diminished capacity to maintain timely debt service Debt payment culture is weak, demonstrated by bond restructuring. Economic assessment 6 Based on GDP per capita as per Selected Indicators in Table 1. Weighted average real GDP per capita trend growth over a 10-year period is below sovereigns in the same GDP category. Concentrated economy with gold mining and related manufacturing representing more than 20% of GDP. Material revisions to economic and fiscal data are common and add uncertainty. External assessment 6 Based on narrow net external debt and gross external financing needs as per Selected Indicators in Table 1. There is a risk of marked deterioration in the cost of or access to external financing due to financial sector operating in a more difficult environment. The country has constraints on debt issuance...

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