S&P revises Belize outlook to positive

Monday, November 10, 2014

Standard & Poor's raised Belize's outlook on long-term ratings to positive from stable due to investments of US$140mn in sugar and additional investment in nontraditional agricultural products.

The ratings agency also affirmed the country's 'B-' and 'B' long and short-term foreign and local sovereign credit ratings.

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New investments are seen as likely improving the country's external liquidity.

Moreover, the Belizean government is also preparing to establish a foreign exchange reserve for nationalization compensation payments, which is expected to begin in 2016.

Despite the positive outlook, various factors limit the country's long-term ratings, including "weak political institutions, productivity limitations resulting from low investment over the past decade, and the country's limited pool of skilled labor," S&P said.