Honduras Rating Cut by S&P on Debt Burden, Deficit
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Honduras’s credit rating was lowered by Standard & Poor’s as the Central American country is saddled with a rising debt burden and a limited ability to fund deficit spending.
The credit rating was cut to B from B+ as the country’s ratio of debt-to-gross domestic product is forecast to rise to 27 percent this year from 21 percent last year, S&P said in a report today. The central government deficit remains near 6 percent of GDP, S&P said. The downgrade comes 14 months after S&P raised Honduras’s credit rating to B+, citing moderate fiscal deficits and greater political stability.