Something that does not happen much, Standard & Poor's has cut its credit rating on the Republic of Seychelles to selective default! The country has just failed to service a privately placed euro 54.75 million amortising note due 2011.
The ratings agency also lowered its rating on Seychelles $230 million global bond due 2011 to "CCC-" from "CCC". All Seychelles bonds have fallen like rocks! Ouch..