Moody's lowers Jamaica

Moody's Investors Service said it downgraded Jamaica's government bond ratings to reflect deterioration in the country's fiscal and debt positions as a result of the global economic downturn.

The foreign- and local-currency ratings for the bonds have been revised to B2 from B1 and Ba2, respectively, and the foreign-currency country ceiling for deposits was downgraded to B3 from B2.

The outlook is stable.

"While Jamaica's high willingness to pay remains an integral element of its credit profile, the government's finances and the external position are simply too weak to face a shock of this magnitude without a worsening of credit risk," Moody's vice president Alessandra Alecci said in a statement.

"Despite policy initiatives aimed at restoring debt sustainability, the severity of the global downturn is taking a toll on the government's finances and on all key inputs affecting public debt metrics," she added.

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