Virgin Islands loses its rating from S&P
The U.S. Virgin Islands lost its bond ratings from S&P Global Ratings, which cited the government’s choice to not provide adequate information.
The action stems from the government’s statement on Aug. 25 that it would cease providing S&P with information to support the rating, said S&P credit analyst Oladunni Ososami. It also stems from “our subsequent attempt to obtain timely information of satisfactory quality to maintain our rating on the securities in accordance with our applicable criteria and policies.”
S&P had rated the islands’ senior and subordinate matching fund loan notes CCC-plus. It had rated its gross receipts tax notes CCC.
Hurricanes Irma and Maria “are likely to weaken [the Virgin Islands’] economy and finances both in the immediate term and over a longer horizon,” S&P said.
Fitch Ratings withdrew its ratings on the bonds on Sept. 28, also citing the government’s decision not to share certain information.
Moody’s Investors Service rates the matching fund bonds Caa1.
The government has set up a web site at https://www.usvipfainvestorrelations.com/usvi-investor-relations-vi/i2880 to provide investors with information about its finances.