S&P has lowered the DomRep’s long-term sovereign credit rating to B (stable) from B+ due to a deteriorating economic outlook. Already in 2008, says S&P, fiscal slippage and high oil prices have led to an expected 4.5% of GDP general government deficit and 10% of GDP current account deficit. In 2009, S&P estimates that real GDP growth will slow to just 1%, led by diminished external demand. This, says the agency, is already seen with a sharp slowdown in tourism receipts, remittances, and free zone exports beginning in the second half of 2008. In addition, monetary tightening will dampen credit growth, consequently hurting domestic consumption and investment.