Republic of Suriname 'BB-/B' Ratings Affirmed; Outlook Remains Stable

OVERVIEW A narrow economy vulnerable to commodity price swings, monetary and exchange rate rigidities, shallow domestic capital markets, and high dollarization constrain the rating on Suriname. We are affirming our 'BB-/B' long-term and short-term sovereign credit ratings on the Republic of Suriname. The outlook on the long-term rating remains stable, reflecting that we expect continuity in economic policy after the elections due in late May 2015. We also expect the next administration to undertake tax and spending measures necessary to contain the fiscal deficit and alleviate pressures on foreign exchange reserves, especially if commodity prices stay low. RATING ACTION On April 17, 2015, Standard&Poor's Ratings Services affirmed its 'BB-' long-term sovereign credit ratings on the Republic of Suriname.

...Net external liabilities/CARs (%) 16.7 0.7 (5.9) (13.9) (7.2) 12.9 41.9 52.8 60.9 60.0 50.8 Note: Other depository corporations (dc) are financial corporations (other than the central bank) whose liabilities are included in the national definition of broad money. Gross external financing needs are defined as current account payments plus short-term external debt at the end of the prior year plus nonresident deposits at the end of the prior year plus long-term external debt maturing within the year. Narrow net external debt is defined as the stock of foreign and local currency public- and private-sector borrowings from nonresidents minus official reserves minus public-sector liquid assets held by nonresidents minus financial-sector loans to, deposits with, or investments in nonresident entities. A negative number indicates net external lending. The data and ratios above result from Standard & Poor's own calculations, drawing on national as well as international sources, reflecting Standard...

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