Published On: Fri, Mar 23rd, 2018

Credit rating agency S&P more negative about Curaçao’s outlook

Standard-and-Poors-buildi-007WILLEMSTAD - Credit rating agency Standard & Poor's (S & P) has become more negative about the prospects for the creditworthiness of Curaçao.

The rating agency believes that the economic and budgetary uncertainty in this autonomous country within the Kingdom of the Netherlands has increased.

The experts of S & P mainly focus on the future of the large oil refinery in Curaçao the Isla. It has been operated for years by the Venezuelan state oil company Petróleos de Venezuela (PDVSA), but Curaçao wants to start working with another operator after 2019. Reason for this is the Venezuelan crisis.

The government was already preparing to continue with the Chinese company Guangdong Zhenrong Energy, but a preliminary agreement with this company was canceled earlier this year. If the work at the refinery in 2020 would come to a standstill, then that probably has major economic consequences for Curaçao.

The experts are also satisfied with, in their view, the stable and democratic political system of the island state.

Curaçao, for the time being, retains its creditworthiness of A- at S & P. The corresponding prognosis goes down from stable to negative. The negative expectation means that the chance of a lower rating for Curaçao has increased.

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