NewsWhore
07-23-2008, 04:00 PM
The Standard & Poor's agency has improved the Dominican Republic's credit rating to B+B, and taken the DR off of the non-trustworthy list of nations where it was placed last 8 February with negative implications due to the uncertainty surrounding payments that had to be made in the Sun Land case between March and July for a total of US$130 million. According to most of today's newspapers, the risk assessment firm reported that the promissory payment notes related to the Sun Land case, drawn up for US$130 million, should have been paid in September last year, but were cleaned up this year, when they were bought by foreign investors and then acquired by an unnamed Dominican bank last February.
The firm points out that the forecast for the Dominican Republic is negative in the near future due to an increase in the fiscal deficit in the current accounts which has reduced the country's external liquidity.
The report also points out that the forecast reflects the increased risk due to the lack of liquidity and the stress due to macro-economic problems that could damage the Dominican Republic's credit level in the future.
Standard & Poor's says that a successful implementation of economic policies aimed at reducing the country's external and fiscal vulnerabilities without causing a decline in the Dominican economy could have a good result, and therefore they have changed their estimate from negative to 'stable'.
The risk assessment firm pointed out that recent fiscal plans announced by the authorities, including controls on public spending, could lower the fiscal deficit to 4% of the GDP this year and perhaps to a 3.4% for next year, compared to the 6% that was forecast without any fiscal corrections.
More... (http://www.dr1.com/index.html#4)
The firm points out that the forecast for the Dominican Republic is negative in the near future due to an increase in the fiscal deficit in the current accounts which has reduced the country's external liquidity.
The report also points out that the forecast reflects the increased risk due to the lack of liquidity and the stress due to macro-economic problems that could damage the Dominican Republic's credit level in the future.
Standard & Poor's says that a successful implementation of economic policies aimed at reducing the country's external and fiscal vulnerabilities without causing a decline in the Dominican economy could have a good result, and therefore they have changed their estimate from negative to 'stable'.
The risk assessment firm pointed out that recent fiscal plans announced by the authorities, including controls on public spending, could lower the fiscal deficit to 4% of the GDP this year and perhaps to a 3.4% for next year, compared to the 6% that was forecast without any fiscal corrections.
More... (http://www.dr1.com/index.html#4)