Thanks to The Government & The NDX, Both Fitch & S&P Downgrade Jamaica

S&P called the National Debt Exchange (NDX), which seeks to lower debt costs, an outright default, while Fitch said it would constitute a distressed debt exchange (DDE).

Both agencies also lowered the ratings on the government securities not included in the debt exchange to ‘CCC’.

“Although the operation does not directly involve international bonds, Fitch has lowered the rating on Jamaican Eurobonds to ‘CCC’, as an unsuccessful debt exchange could result in increased financing pressures for the sovereign,” said the ratings agency.

However, “Jamaica’s ratings will be raised out of default shortly after Fitch determines that the exchange has been successful, which is typically measured by a minimum participation rate of 90 per cent.”