REUTERS
PAPUA NEW GUINEA'S INVESTMENT RISK has worsened after a failed mutiny, with Standard & Poor's revising its outlook to negative today and warning that the political crisis, with two competing prime ministers, was impeding the resource-driven economy.
"Political settings in PNG have weakened following the detention and later release of the defence force chief," said S&P in revising down the outlook for PNG, whose 'B+/B' sovereign credit rating was affirmed.
"We would lower the ratings if the political friction remains unresolved, leading to a loss of donor support and investment required to diversify the economy and buttress PNG's government finances and external position.
"The unresolved claims to the prime minister position underlie the vulnerabilities associated with the country's fragmented political structure," said S&P.
Reporting by Michael Perry; Editing by Lincoln Feast and Richard Borsuk
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