Grenada Government: Standard and Poor’s Ratings Action “Premature”

Above: St George’s (CJ Photo)

By the Caribbean Journal staff

Standard & Poor’s decision to lower Grenada’s foreign currency ratings this week following a missed bond payment was “premature,” the country’s government said in a statement.

Grenada said that the terms of agreement for its 2025 Notes provide a grace period of 30 days after the due date of the payment, one which it said had not yet expired.

The payments on a $193 million bond, which were due on the Regional Government Securities Market, will continue as normal, Grenada said.

“The government of Grenada fully understands the importance of the RGSM for Grenada and other member governments of the Eastern Caribbean Currency Union and is deeply committed to the RGSM,” it said.

Grenada said it had met all of its obligations on the RGSM from 2008 to 2010, and that its treasury bills on the RGSM had been unaffected by Hurricanes Ivan and Emily.

“The government of Grenada confirms to all investors that it will continue to meet its obligations as and when they fall due on the Regional Government Securities Market.”