By BBN Staff: For the second time in less than two week, Standard & Poor’s has downgraded Belize’s long-term credit ratings.

On November 14, S&P lowered Belize’s rating from B to CCC+. Now, S&P has further downgraded Belize’s rating to CC. According to the S&P rating scale: “The CC rating is used when a default has not yet occurred, but S&P Global Ratings expects default to be a virtual certainty, regardless of the anticipated time to default.”

S&P says the downgrade comes as a result of government’s efforts to restructure the 2038 Bond and the bond’s high vulnerability to non-payment. S&P classifies GOB’s latest restructuring efforts as “distressed” even though it has not yet proposed specific details for new terms.

Considering tight financial conditions, S&P expects Belize to default on one or both coupon payments due in February and August 2017 at US $13.3 and US $17.8 Million respectively.