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st1\:*{behavior:url(#ieooui) }Fitch Ratings announced Wednesday night that it has lowered the country's long-term foreign and local currency issuer default ratings from Triple C to Restricted Default or "RD."
This rating is assigned when a country defaults on one or more of its financial commitments, although it continues to meet other financial obligations.
Fitch explained that the rating downgrade was triggered by the Jamaica Debt Exchange Programme which constitutes a coercive debt swap.
Fitch has also downgraded Jamaica's short-term foreign currency rating to 'D.'
However, it has maintained the Triple C rating on the country's foreign currency denominated securities as they were not affected by the Jamaica Debt Exchange programme.
On the positive side, Fitch says it will upgrade Jamaica's sovereign ratings back into the 'B' category provided that the Government secures International Monetary Fund approval for a standby facility and achieves improvement in it external and fiscal position.
MOF calculating participants in JDX
In the meantime, an update is expected on the outcome of the government's Jamaica Debt Exchange (JDX) programme which officially ended on Wednesday.
Up to late Wednesday evening, the Ministry of Finance was still processing acceptance notices from holders of government instruments who signed up to participate in the programme.
Information released on Tuesday, revealed a 95% acceptance rate.
Finance Minister Audley Shaw says bondholders who have not yet signed up still have a chance to do so.
"The formal exchange itself will not be implemented until February 16 at which time I am confident that we'll be in a position to announce a 100% participation in the JDX," he said.
Under the debt exchange programme, the government is expected to save $43 billion in interest expenses during the 2010/11 fiscal year.
st1\:*{behavior:url(#ieooui) }Fitch Ratings announced Wednesday night that it has lowered the country's long-term foreign and local currency issuer default ratings from Triple C to Restricted Default or "RD."
This rating is assigned when a country defaults on one or more of its financial commitments, although it continues to meet other financial obligations.
Fitch explained that the rating downgrade was triggered by the Jamaica Debt Exchange Programme which constitutes a coercive debt swap.
Fitch has also downgraded Jamaica's short-term foreign currency rating to 'D.'
However, it has maintained the Triple C rating on the country's foreign currency denominated securities as they were not affected by the Jamaica Debt Exchange programme.
On the positive side, Fitch says it will upgrade Jamaica's sovereign ratings back into the 'B' category provided that the Government secures International Monetary Fund approval for a standby facility and achieves improvement in it external and fiscal position.
MOF calculating participants in JDX
In the meantime, an update is expected on the outcome of the government's Jamaica Debt Exchange (JDX) programme which officially ended on Wednesday.
Up to late Wednesday evening, the Ministry of Finance was still processing acceptance notices from holders of government instruments who signed up to participate in the programme.
Information released on Tuesday, revealed a 95% acceptance rate.
Finance Minister Audley Shaw says bondholders who have not yet signed up still have a chance to do so.
"The formal exchange itself will not be implemented until February 16 at which time I am confident that we'll be in a position to announce a 100% participation in the JDX," he said.
Under the debt exchange programme, the government is expected to save $43 billion in interest expenses during the 2010/11 fiscal year.
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