Colombia’s dollar bonds dropped and the peso led losses among emerging-market currencies after S&P Global Ratings cut the country’s credit rating to junk amid a political crisis and mass unrest, Bloomberg News reported. The nation’s dollar-denominated bonds due 2031 dropped 0.4% to 96.7 cents in early New York trading Thursday, sending their spread over U.S. Treasuries up to 1.84 percentage points. The peso weakened 2% to 3,760 per dollar. Colombia's risk premium climbs amid political crisis and fiscal concern S&P cut Colombia’s sovereign rating one notch to BB+ on Wednesday, after the government’s plan to raise taxes to curb the deficit was blocked by congress and mass street protests in recent weeks. The cost of insuring the nation’s bonds against default with five-year credit default swaps rose to the most since October, as investors see the country as increasingly risky. A bill to increase taxes introduced last month triggered widespread civil disorder and the resignation of the finance minister, and was even opposed by President Ivan Duque’s own party. Even after the bill was withdrawn, highway blockades and street demonstrations have continued across the nation over a range of other grievances. Colombia is still rated at the lowest level of investment grade by Fitch Ratings and two levels above junk by Moody’s Investors Service. Read more.