Tuesday 27 September 2022

Fitch Revises Costa Rica’s Outlook To Negative; Affirms Ratings At ‘BB’

Paying the bills

Latest

The Latest Online Poker Games In Costa Rica

While Costa Rica is one of the most beautiful...

Canada to drop all COVID-19 travel restrictions

Q TRAVEL - The Canadian government announced on Monday...

Electricity rate drop effective Oct 1

QCOSTARICA - Consumers will experience a sharp reduction in...

Ruta 27 tolls drop on Oct 1

QCOSTARICA - The tolls on Ruta 27 will have...

Italy election: Who is Giorgia Meloni, the star of the far right?

Q REPORTS (DW) In Rome's Via Della Scrofa, not...

Rodrigo Chaves congratulated Italy’s newly elected president

QCOSTARICA - Costa Rica President, Rodrigo Chaves, congratulated Giorgia...

“Chochinilla” case: Court eliminates house arrest for owners of MECO and H. Solís

QCOSTARICA - The Criminal Court of Finance and Public...

Dollar Exchange

¢637.98 Buy

¢641.96 Sell

27 September 2022 - At The Banks - BCCR

Paying the bills

Share

Fitch Ratings revised the rating of the Costa Rican economy from stable to negative, according to a press release issued by the rating agency.

The agency affirms a ‘BB’, which keeps Costa Rica in a category of high speculation.

Fitch says the negative outlook reflects Costa Rica’s diminished flexibiliyt to finance its rising fiscal deficit and public debt burden, at the same time it is not possible to specify a concrete solution that allows improving public finances.

- Advertisement -

The ratings agency says “prolonged delays in addressing Costa Rica’s fiscal imbalance will amplify costs of future adjustments and raise risks to growth”.

The negative outlook also reflects Costa Rica’s “persistent institutional gridlock preventing progress on reforms to correct fiscal imbalance”.

Fiths says it expects Costa Rica will be able to manage its liquidity situation, however, tightening market conditions and persistent institutional obstacles point to growing funding challenges.

A year ago, Fitch downgraded Costa Rica from BB+ to BB, and from negative to stable outlook.

The rating agency considers that “the likely winner of the presidential election on February 4, 2018 is very uncertain” and assumes that the winner will have another minority government and “will face challenges of a highly fragmented legislature, which could complicate the creation of coalitions and increase the legislative paralysis and the inertia of the reforms.”

For their part, BB’s rating is supported by structural indicators that are strong compared to their peers, such as high levels of per capita income, social development and government standards, the statement said.

- Advertisement -
Paying the bills
Avatar photo
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Fitch maintains Costa Rica’s risk rating at ‘B’, due to deteriorating public finances

QCOSTARICA - Fitch Ratings affirmed this Tuesday Costa Rica's Long-Term Foreign-Currency...

Costa Rica, Chile and Brazil have administered the highest number of doses per capita to date.

QCOSTARICA - Widespread vaccination is the key to overcoming the COVID-19...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.