November 22, 2021 |
Rating agency downgrades the Caribbean nation as sanctions and the COVID-19 pandemic limit the government's ability to pay external debt
"Although Cuba fully reopened its borders to tourism, Moody's expects hard-currency inflows to recover only gradually because the island will face strong competition from other tourism destinations in the Caribbean and strict limitations imposed on travelers by the US government," the rating agency said in a report on Thursday.
Moody's added that the sanctions will continue to "weigh on investment perspectives."
The Cuban economy shrank 10.9% in 2020 as a result of major decline in tourism caused by the COVID-19 pandemic, Moody's said. In addition, the government's "limited ability" to provide basic goods and medicine during the pandemic continues to fuel political discontent.