Last month, Jamaica launched a National Debt Exchange (NDX) to alleviate the financing pressures of its sizeable debt load.

In a statement on Wednesday, Moody’s outlined the reason for the downgrade, stating Jamaica’s still high debt burden remains unchanged since the announced restructuring did not impose any principal haircuts.

Moody’s has projected that Jamaica’s 2013 debt metrics, at 119 per cent of gross domestic product and 470 per cent of revenues, are among the highest of all rated sovereigns.

On Wednesday, Standard & Poor’s raised Jamaica’s credit rating to CCC+ from default, following the completion of the NDX which received support from 99 per cent of bondholders.

Reprinted from Caribbean360