Standard & Poor's cuts rating of Honduras

Honduras’s credit rating was lowered by Standard & Poor’s as the country is saddled with a rising debt burden and a limited ability to fund deficit spending.

The credit rating was cut to B from B+ as the country’s ratio of debt-to-gross domestic product is forecast to rise to 27 percent this year from 21 percent last year, the agency said.

The downgrade comes 14 months after Standard & Poor's raised Honduras’s credit rating to B+, citing moderate fiscal deficits and greater political stability.

Source: Bloomberg