Seychelles foreign debt cut to 'CCC/C', on negative watch - S&P
Standard & Poor's Ratings Services downgraded the Republic of Seychelles' foreign currency debt, and signalled a further possible downgrade, after holders of the republic's 54.75 million euros amortizing notes due 2011 noted their intention to accelerate payment as the republic has failed to make interest and principal payments due on July 1.
S&P lowered Seychelles' foreign currency sovereign credit rating to 'CCC/C' from 'B/B' and placed the rating, along with the 'B+' long-term local currency ratings, on negative watch.
S&P noted that the government has asserted that it did not pay debt service on the notes because of irregularities in the issuance approval process and a lack of transparency in the note documentation, which the agency has not yet reviewed.
"The government's actions also raise broader questions about its debt-management policies and heighten concerns about its capacity to service $230 million of rated global bonds," the agency said.
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08-03-2008, 08:43 PM
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