Suriname credit rating raised to 'B+'
|
| Published on Monday, November 19, 2007 |
Email To Friend Print Version |
NEW YORK, USA (Reuters): Standard & Poor's raised its credit rating for Suriname one notch to 'B+' from 'B', citing improved macroeconomic fundamentals and efforts on the legislative and institutional fronts to preserve these gains.
"The positive trends on the economic side are paralleled by the government efforts to sustain fiscal discipline and improve the public sector's balance sheet," S&P said in a statement.
The credit rating outlook is stable.
S&P's move on Suriname pulls it even with Moody's Investors Service 'B1' rating while Fitch Ratings is one notch behind at 'B'.
The ratings agency said Suriname's improved balance sheet reflects higher commodity prices. The South American nation exports alumina, gold, and oil.
In addition, S&P cited ongoing gains in production capacity and productivity in mining, oil and bananas, investments for bolstering future economic expansion and economic diversification.
Another important factor contributing to improvement has been Suriname's aggressive debt reduction.
But constraints on the credit persist.
"The ratings continue to be constrained by unduly large, often inefficient, and costly state involvement in the real economy," S&P said.
"The resulting structural weaknesses remain largely unaddressed and continue to cause many economic distortions, create much red tape, undermine policymaking transparency, and give rise to corruption," the statement said. | | | | Reads : 81 |
|
