...- The COVID-19 pandemic will exacerbate Curacao's already fragile economy, leading to a major economic contraction and significant increase in the government's fiscal deficit in 2020. - Despite recent strain in Curacao's institutions (see "Curacao Long-Term Sovereign Ratings Lowered to `###' from `###+' On Institutional Challenges; Outlook Negative," published March 10, 2020), we expect Curacao's status as a constituent country within the Kingdom of the Netherlands will allow the country to benefit from the Netherlands' commitment to mutual aid and assistance this year. - We are affirming our '###/A-2' long- and short-term sovereign credit ratings on Curacao. - The negative outlook reflects the risks that the impact of the pandemic will be more severe or prolonged than we currently expect, leading to a weaker long-term economic outlook, worsened fiscal profile, or more strained external accounts. The outlook also reflects the potential risks to external financing should institutional ties...
