Fitch Ratings, the international rating agency, joined Standard & Poor, Morgan Stanley, Moody’s, the Economist Intelligence Unit, Bear Stearns and other international agencies that monitor the performance of countries with bonds placed in international capital markets, giving a thumbs down to the performance of the Dominican economy. The agency demoted the Dominican Republic’s foreign and local currency obligations to ‘B” from “B+”, and reports a Rating Watch Negative outlook. According to the agency, “The action reflects liquidity concerns due to continued pressures on the sovereign’s slim foreign exchange position.” Fitch is also concerned about the availability of multilateral funding over the coming year, due to what it describes as unresolved issues in the electricity sector regarding the Union Fenosa buyback deal. Fitch points out that “with US$504.3 million in public sector medium- and long-term debt amortizations due next year, the Dominican Republic can ill afford to lose multilateral financing.” For more details, see
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