S&P Global Ratings downgraded its long-term sovereign credit rating on Suriname to CCC+ from B, citing increased financing challenges in the wake of the coronavirus pandemic and falling oil prices.
With investors becoming risk-averse amid the outbreak, Suriname's government might face challenges in funding its already elevated financing requirements and meeting debt obligations, the rating agency said, which sees a 1-in-3 chance that Suriname would default on its debt obligations in the next 12 months.
Uncertainty regarding a clear majority in the upcoming elections will add to the government's pressure in taking fiscal and economic policy measures in a timely manner, S&P Global Ratings added.
The outlook is negative, reflecting the chances of a potential downgrade in the next 12 months "should economic conditions, fiscal outcomes, or funding availability not improve," according to the rating agency.
S&P Global Ratings also lowered its transfer and convertibility assessment on Suriname to CCC+ from B+.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.