Moody's Eyes Belize Bonds

Moody's Investors Service has placed the ratings of two classes of bonds issued by Belize Mortgage Co. 2002-1 under review for possible downgrade.Moody's placed the A3 rating of the class A bonds and the B2 rating of the class B bonds issued by Belize Mortgage under review as a result of a recent downgrade of the Belize government's ratings. The Belize government guarantees the obligations of the Development Finance Corp., which in turn guarantees the timely payment of interest, principal, and other charges on the bonds. The bonds are also supported by collateral, and the class A bonds carry an additional guarantee from Steadfast Insurance Co. that is designed to protect investors against a failure by the government. "Therefore, the ratings of the class A bonds, and to a higher degree, that of the class B bonds, are linked to the ability and willingness of the government of Belize to pay under its guarantees," Moody's said.