16 Apr 2009

Fiji's credit rating lowered by international credit agency

11:16 am on 16 April 2009

The worsening political situation in Fiji has prompted a further lowering of the country's international credit rating.

The military regime devalued the Fiji dollar by 20 percent yesterday, in an effort to boost tourism and help exporters.

The government of Commodore Frank Bainimarama wants to stop cash reserves leaving Fiji.

But the credit rating agency Standard and Poor's has lowered Fiji's long term foreign currency credit rating from B to B-minus and its short term one from B to C.

It says the postponement of elections until 2014 will see fewer tourists visit Fiji and is likely to defer a resumption of foreign aid.