New York, June 09, 2015 — The recent removal of Cuba from the list of countries that the US considers to be sponsors of terrorism is credit positive for the sovereign, says Moody’s Investors Service. Moody’s rates Cuba Caa2 with a stable outlook.
Although largely symbolic, removal from the list could reduce the stigma for non for non-US financial organizations of providing financial flows and international banking services to Cuba if regulations are eased further. It also increases the likelihood that Cuba could receive funds from international organizations, such as Corporacion Andina de Fomento (CAF), among others, says Moody’s in the report “Removal from List of States that Sponsor Terrorism Is Credit Positive.”
Removal from the terrorism list follows the December 2014 announcement of normalization of relations between the two countries, a process that has spurred a growth in tourism.
Tourism contributes to the country’s flow of foreign exchange. Cuba…
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