Trinidad currency ratings on credit watch

Standard and Poor’s said it would review the status of the twin-island republic after it determines the full extent of the government’s financial liabilities as a result of its bailout.

PORT OFSPAIN, Trinidad, February 5, 2009 – The financial difficulties facing CL Financial have prompted global ratings firm Standard and Poor’s to put Trinidad and Tobago on credit watch.

The country's A/A-1 foreign currency and A+/A-1 local currency ratings have been placed on the watch list "with negative implications” following the Trinidad government’s announcement that it will “assume control of or provide support to several key subsidiaries of the CL Financial Group”

The Trinidad government has not yet indicated how much money is being put into the rescue package.

The New York-based firm said it would review the status of the twin-island republic after it determines the full extent of the government’s financial liabilities as a result of its bailout.

"We will resolve the CreditWatch status of the ratings once we can estimate the potential fiscal cost to the government, the broader damage to its financial system, and any impairment to the island's medium-term growth prospects," said Standard and Poor's credit analyst Roberto Sifon-Arevalo.