Rating agency downgrades Jamaica’s bonds

The Finance Ministry has confirmed reports that the international agency Moody’s has downgraded the ratings on Jamaica’s government bonds.



The foreign currency ratings for the bonds have been revised to B2 from B1 while the ratings of the local currency and had dropped from B2 to BA2.



In addition, the foreign currency country ceiling for deposits was revised to B3 from B2.



However all other ratings remain unchanged and the outlook on all ratings is stable.



Moody’s said the rating action was predicated on its anticipation that Jamaica’s key macroeconomic indicators will deteriorate in 2009.



According to Moody’s, the deterioration is a global phenomenon, and Jamaica is particularly vulnerable as a small, very open economy.



However, Moody’s says in recognition of Jamaica’s proven ability to navigate through situations of high volatility it expects the country to continue its strong commitment to debt servicing.



The rating action announced today concludes a review of Jamaica’s credit risks that began in November 2008.