Persistent economic and financial challenges, along with slow progress on policy reforms and fiscal consolidation, have strained Curacao's relationship with the Netherlands, weakening our institutional assessment. As a result, we are lowering our long-term foreign and local currency ratings on Curacao to 'BBB' from 'BBB+' and affirming our short-term foreign and local-currency ratings at 'A-2'. We are also revising down our transfer and convertibility assessment to 'BBB' from 'BBB+'. The negative outlook reflects the risk that policy differences, or weaker fiscal performance, could potentially limit Curacao's future access to concessional funding. On March 10, 2020, S&P Global Ratings lowered its long-term foreign and local currency ratings on Curacao to 'BBB' from 'BBB+' and affirmed its short-term foreign and local currency
