Andorra has had its credit rating cut from BBB plus to BBB by Standard and Poor’s, two notches above so-called junk status.
The move comes four days after BPA – Banca Privada d’Andorra – was deemed a “primary money-laundering concern” by the US Treasury Department.
Andorra replaced the board of the bank on Thursday and fired several managers after taking over management of the bank.
The Treasury Department said BPA managers helped launder money, including two billion dollars allegedly siphoned from the Venezuelan state oil company.
It also said one unnamed high-level bank manager accepted “exorbitant commissions” to develop shell companies that helped launder the Venezuelan company’s money.