14 Sep 2006

Standard and Poor's rates Fiji

9:49 am on 14 September 2006

The international credit rating agency, Standard and Poor's, has rated Fiji's 150-million US dollar bond placement on the international debt market at BB MINUS.

Standard and Poor's says the rating reflects Fiji's narrowly based economy and persistent fiscal and current account deficits.

Its credit analyst, Kyran Curry, is quoted as saying Fiji's fiscal performance is weak partly as a result of the government's deliberately expansionary fiscal policies to boost growth after the coup.

The international merchant bank, JPMorgan, has placed the Fiji bonds on the Singapore market where they did well initially before falling back in price.

The Fiji government needs the money to boost dwindling foreign exchange reserves.