Fitch affirms Rating and Outlook of Belize Sovereign Investments III

Fitch Ratings has taken the following rating actions on the notes issued by Belize Sovereign Investments III (BSI): USD 85.7 million notes affirmed at ‘A’; Outlook Stable.

The rating on the notes is supported by the financial strength of the insurance provider, Steadfast Insurance Company (a subsidiary of Zurich North America (ZNA)), the relatively straightforward claims paying process, as well as, to a lesser extent, by the default probability of the Government of Belize. The insurance policy covers 100% of principal and accrued interest on the notes should the Government of Belize fail to honor its obligation.

Fitch took into consideration limitations to the policy’s claims-paying probability. The ratings agency focused on the policy’s conditionality, termination events, and claims-paying process.

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