Republic of Suriname Downgraded To 'B' From 'B+' On Worsening Economic Strength And Debt Burden; New Debt Rated 'B'

OVERVIEW We are lowering our long-term sovereign credit rating on the Republic of Suriname to 'B' from 'B+'. We are also revising our transfer and convertibility assessment on Suriname to 'B+' from 'BB-'. The downgrade reflects the worsening of our assessment of the country's economic strength and its debt burden. We are assigning our 'B' senior unsecured debt rating to Suriname's US$550 million bond due in 2026. The negative outlook reflects our view that there is an at least one-in-three chance of a downgrade over the next 12 months that delays in strengthening revenues or a failure to contain spending could result in a return to persistently high fiscal deficits and further increases in general government debt and interest expense;

...OVERVIEW + We are lowering our long-term sovereign credit rating on the Republic of Suriname to 'B' from 'B+'. + We are also revising our transfer and convertibility assessment on Suriname to 'B+' from '##-'. + The downgrade reflects the worsening of our assessment of the country's economic strength and its debt burden. + We are assigning our 'B' senior unsecured debt rating to Suriname's US$550 million bond due in 2026. + The negative outlook reflects our view that there is an at least one-in-three chance of a downgrade over the next 12 months that delays in strengthening revenues or a failure to contain spending could result in a return to persistently high fiscal deficits and further increases in general government debt and interest expense; or that a weaker external liquidity position could put greater pressure on the exchange rate, boost inflation expectations, undermine domestic confidence, and place greater strain on the domestic financial system. RATING ACTION On April 26, 2017,...

Ratings Action