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Tuesday, 22 January 2008
There are fresh concerns that Jamaica's stable rating could be downgraded to negative.
Pan Caribbean Financial Services Limited, in its outlook for 2008, says there is increased probability of a rating downgrade.
It says based on the increasingly conservative posture of rating agencies, Jamaica's stable rating could be revised to negative in the first half of the year.
Pan Caribbean says such a move is likely to be based on the fiscal deficit overshooting target, rising inflation, the deteriorating current account and a dismal growth outlook.
Regarding the foreign exchange market, Pan Caribbean says the Jamaican dollar could depreciate sharply should the pending United States (US) recession constrain foreign currency inflows.
Additionally it says investors could increase demand for US dollar assets, if the decline in confidence persists.
It adds that the condition could be exacerbated by a rating downgrade.
There are fresh concerns that Jamaica's stable rating could be downgraded to negative.
Pan Caribbean Financial Services Limited, in its outlook for 2008, says there is increased probability of a rating downgrade.
It says based on the increasingly conservative posture of rating agencies, Jamaica's stable rating could be revised to negative in the first half of the year.
Pan Caribbean says such a move is likely to be based on the fiscal deficit overshooting target, rising inflation, the deteriorating current account and a dismal growth outlook.
Regarding the foreign exchange market, Pan Caribbean says the Jamaican dollar could depreciate sharply should the pending United States (US) recession constrain foreign currency inflows.
Additionally it says investors could increase demand for US dollar assets, if the decline in confidence persists.
It adds that the condition could be exacerbated by a rating downgrade.