Saturday, 11 July 2020

Fitch Affirms Costa Rica’s Foreign Currency IDRs at ‘BB+’; Outlook Negative

QCOSTARICA (4-Traders.com) Fitch Ratings has affirmed Costa Rica’s Long-term foreign- and local-currency IDRs at ‘BB+’. The Rating Outlook is Negative.

The issue ratings on Costa Rica’s senior unsecured foreign- and local-currency bonds have been affirmed at ‘BB+’. The Short-term foreign-currency IDR has been affirmed at ‘B’ and the Country Ceiling at ‘BBB-‘.

Costa Rica’s ratings are underpinned by its strong structural features relative to peers in terms of high per-capita income, social development indicators and governance, as well as the continued success of its economic model centered around high value-added service and manufacturing activities, which are boosted by strong foreign direct investment inflows. Costa Rica also benefits from favorable U.S. demand growth and low oil prices.

The Negative Outlook reflects adverse public debt dynamics, driven by large fiscal deficits, and legislative gridlock preventing progress on reforms to correct fiscal imbalances in a timely manner.

- paying the bills -

The central government deficit inched upward to an estimated 5.9% of GDP in 2015, driven by higher interest costs as efforts to improve tax collections and contain salaries and discretionary spending helped arrest growth in the primary deficit. The 2016 budget envisions a higher deficit of 6.9% of GDP, although budget under-execution could bring it closer to 6%. A growing interest bill and rigid spending commitments on salaries and legally-protected social transfers will maintain pressure on public finances.

Continue reading at http://www.4-traders.com/news/Fitch-Affirms-Costa-Rica-s-Foreign-Currency-IDRs-at-BB-Outlook-Negative–21718873/

- paying the bills -
- paying the bills -
Q24N
Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

“Hammer” time, Costa Rica’s GAM under ‘orange’ alert

(QCOSTARICA) The number of COVD-19 infections in the last few days...

Link to the Epidemiological Data form required for travel to Costa Rica

(QTRAVEL) Until August 1. 2020, entry requirements permit only Costa Rican...

MOST READ

Hypertension and diabetes most frequent risk factors in deaths of COVID-19 patients

(QCOSTARICA) Eight of the 23 deaths of COVID-19 patients suffered from high blood pressure and diabetes, six suffered from high blood pressure, both diseases...

COVID-19 Patients over 40 spend up to 11 days in hospital

(QCOSTARICA) COVID-19 patients over 40 years of age spend on average up to 11 days hospitalized in Costa Rica's medical centers. The president of the...

Alajuelita: Life on “Orange Alert”

(QCOSTARICA) That a town is on orange alert means that the area has a higher risk of contagion. This is a three-day portrait by...

CCSS testing center at the border with Nicaragua shot at

(QCOSTARICA) The headquarters of the Phytosanitary service of the Caja Costarricense de Seguro Social (CCSS), at the Peñas Blancas border with Nicaragua was attacked...

24 patients with COVID-19 who have received convalescent plasma

(QCOSTARICA) Amid the bad news of the sharp increase in cases and hospitalizations this week, the good news is that 24 people with COVID-19...

Expert: “there is no going back with community transmission”

(QCOSTARICA) Epidemiologist Guiselle Guzmán warned that it is necessary to pass all four phases of a pandemic for COVID-19 to become a seasonal coronavirus...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.