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DOW JONES NEWSWIRES
Standard & Poor's Ratings Services raised the likelihood of a downgrade for Jamaica Monday, saying fiscal flexibility will decrease as the government attempts austerity measures in the midst of slow economic growth.
In lowering its outlook on the Caribbean island to negative from stable, S&P also noted that domestic politics are shifting. It said Prime Minister Bruce Golding's recent resignation opens the possibility for early elections and a change in administration.
The firm also noted Jamaica's standby agreement with the International Monetary Fund has halted.
The move quickly follows S&P's downgrade on the Bahamas' sovereign credit status Monday, although that one-notch cut was because of a new methodology to evaluate the islands' economic weaknesses.
S&P affirmed Jamaica's single-B-minus rating, which is six notches below investment grade.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
Standard & Poor's Ratings Services raised the likelihood of a downgrade for Jamaica Monday, saying fiscal flexibility will decrease as the government attempts austerity measures in the midst of slow economic growth.
In lowering its outlook on the Caribbean island to negative from stable, S&P also noted that domestic politics are shifting. It said Prime Minister Bruce Golding's recent resignation opens the possibility for early elections and a change in administration.
The firm also noted Jamaica's standby agreement with the International Monetary Fund has halted.
The move quickly follows S&P's downgrade on the Bahamas' sovereign credit status Monday, although that one-notch cut was because of a new methodology to evaluate the islands' economic weaknesses.
S&P affirmed Jamaica's single-B-minus rating, which is six notches below investment grade.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
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