November 23, 2020
S&P Global Ratings placed Guatemala's ratings on "credit watch negative" on Friday, saying a legal dispute with the local subsidiary of Florida-based TECO Energy could lead the country to default on its 2026 bonds.
"We believe Guatemala has the funds to pay TECO and the willingness to make the payment on its Eurobond," S&P said in a report.
A US court has blocked Bank of New York Mellon from allowing Guatemala to make a coupon payment on its 4.5% 2026 bonds, pending a commercial dispute
Rating agency says a legal dispute with TECO could lead the country to default on its 2026 bonds