12 Aug 2009

Cooks suffers rating downgrade

4:48 pm on 12 August 2009

The ratings agency Standard and Poors has revised its outlook on the Cook Islands to negative from stable.

The agency warns that any further relaxation in the Cook Islands' fiscal discipline could lead to higher debt levels, given the government's dependence on tourism.

It comes after last month's budget which included tens of millions of dollars in loans from China and the ADB for infrastructure upgrades.