Surprise! Castro, Inc. credit rating downgraded

Moody’s Investors Service has downgraded Castrogonia’s credit rating from “Positive” to “Stable.”

It has also pegged Castrogonia’s long-term ratings as Caa2 and Caa3.

Moody’s long-term rating definitions define Caa obligations as “judged to be of poor standing” and “subject to very high credit risk.”

Cuba’s long-term local currency country risk ceilings and the foreign currency bond ceiling remain unchanged at Caa2. The foreign currency bank deposit ceilings is also unchanged at Caa3.

So, investors, come on down and get bilked!

 

Moody’s Investors Service has today affirmed Cuba’s Caa2 foreign currency issuer rating and changed the outlook to positive from stable.

The key drivers of today’s rating action are the following:

1) Dependence on Venezuela has lessened since 2014, and despite pressure on Cuba’s external finances from lower economic and financial support from its main trade partner, risks remain manageable.

2) Continued reform momentum and increased rapprochement with the United States have supported favorable macroeconomic performance and raise the likelihood that US economic sanctions might be eased further.

The positive outlook on Cuba’s Caa2 rating reflects Moody’s expectation that measures to diversify trade and financial links will contribute to favorable macroeconomic trends and will coincide with continued easing of economic sanctions by the US. The positive outlook also anticipates that the Cuban authorities will maintain the current reform momentum following the Communist Party Congress in April 2016, while managing challenges stemming from weaker external finances.

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Hey, don’t believe these liars!