S & P lowers Grenada into Default
Grenada Prime Minister Tillman Thomas
Standard & Poor’s (S & P) has lowered its foreign currency sovereign credit ratings on Grenada following a missed bond payment, the ratings firm announced Monday.
S&P has lowered its foreign currency sovereign credit ratings to “SD,” or selective default, from “B-/B,” while also lowering its local currency sovereign credit ratings to “CCC+/C” from “B-/B.” Its outlook on long-term local currency ratings of Grenadais negative.
“The downgrade to “SD” follows the government of Grenada’s failure to pay the coupon due September 15, 2012 on its US$193 million bond due in 2025,” said Richard Francis, a credit analyst at S & P.
In Grenada’s statement to bondholders on September 12, Grenada stated its intention to use its “best efforts” to pay the coupon within a 30–day grace period.