New York-based Moody’s Investors Service has downgraded Trinidad and Tobago to what investors call “junk” status.
The Moody’s downgrade late Tuesday evening comes four days after fellow New York-based Standard & Poor’s Global Ratings (S&P) also downgraded the country, replacing its “A-” rating with a “BBB+” rating.
T&T’s new rating is “Ba1” from Moody’s, down from “Baa3”, putting the country on the same level as Suriname and The Bahamas, but beneath Aruba, the Cayman Islands, Curacao and St Maarten.
Moody’s gave as the top two reasons for the downgrade ineffective management of the economy and steadily increasing borrowings by the Government relative to the country’s output or gross domestic product (GDP).
Economist Dr. Roger Hosein believes that this is a troubling sign.
Speaking with News Power Now he revealed that all should be done to ensure that the situation is improved.