Belize Superbond Update

Moody's changed outlook to "NEGATIVE" from "DEVELOPING" but has yet to adjust the bond ratings. In 30 days the default will be final so the bondholders had better come to the table and play ball because the GOB clearly has the leverage in this case. This is political brinksmanship being played out in front of us.

This is the real reason that Treaty's progress in Belize has been muffled if not outright delayed. The GOB wants total silence on any revenue producing ventures until they can get the bondholders to cut a deal. It's doubtful that they get the full 45% haircut, but their chances are much better if they can make the case to the bondholders that petroleum production is declining and that Treaty is in a nascent stage of development as opposed to being on the brink of a 5,000 bpd or more oil field.

http://www.reuters.com/article/2012/08/21/idU...GF20120821