Region’s sovereigns all rated as junk
A RECENT DOWNGRADE by Moody’s of oil-rich Trinidad and Tobago’s sovereign credit rating to non-investment/speculative grade, or “junk” status, now means there are no remaining investment grade sovereigns in the Caribbean.
The downgrade from Baa3 – the lowest level of the investment grade table – to Ba1 at the high end of the speculative grade by the New York-based Moody’s Investors Service in late April, came four days after Standard Poor’s had also downgraded the twin-island republic, replacing its “A-“ rating with a “BBB+”.
Trinidad and Tobago has therefore joined countries such as Barbados, The Bahamas, Jamaica, Suriname, the Dominican Republic, Cuba and Guyana (which is not rated) among the ranks of the non-investment/speculative grade.
“This means that there are no longer any investment grade sovereigns in the Caribbean,” reported group economist for RBC Caribbean, Marla Dukharan. “All the remaining investment grade sovereigns in the Caribbean are non-sovereigns. (AB)
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