Moody's reviews Fiji

Moody's Investors Service said it placed Fiji's Ba2 local- and foreign-currency government bond ratings on review for downgrade. Also included in the review is the country's Ba3 foreign-currency bank deposit ceiling.

The review was prompted by the substantial decline in international reserves that occurred in 2008, by the country's poor economic growth prospects and by continuing political uncertainties, according to the agency.

Moody's noted that the government of Fiji has only limited foreign-currency debt service obligations in the current year and that it should not have a problem meeting these.

Over time, however, the country's low economic growth potential will likely have a negative effect on government finance, the agency noted.

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