Two major issues precluded an upgrade to the country's Sovereign Risk Ratings.
The first issue is an international bond issue of US$150 million, which matures in 2011 and could weigh on liquidity if the loan cannot be rolled over or paid off with new loans.
The second issue is Fiji's current political climate as the interim government refuses to hold democratic elections before 2014, which has soured relations with traditional donors and raises the risk of an outbreak of political and/or ethnic violence.
If the political situation remains unchanged, then Fiji's medium-term outlook remains poor with the country's key export sectors languishing from lack of reform and travel warnings hampering tourist arrivals.
