11242017Headline:
5 Green Reasons Costa Rica Is the Poster Child of the Environment 4 years ago
Have You Tried Guanacaste’s Fastest Growing Sport? 4 years ago
Was Your Costa Rican Bank Account Closed? 4 years ago
Latin America Investment News on Viva Tropical

The Isthmus Facing Credit Risk: Standard & Poor’s

Article Summary:

The sovereign debt of the Central American countries are facing increasing credit risks, as several Central American countries face a growing risk of lending on their foreign debts, according to a report released by the rating agency Standard & Poor’s. The six countries of the region have a note “BB”, which is below the least investment grade, “BBB-”.

Photo Credit: La Nacion

Original Article Text From La Nacion via Google Translate :

Central America faces growing credit risk, says S & P

Several Central American countries face a growing risk of lending on their foreign debts, according to a report released yesterday by the rating agency Standard and Poor’s (S & P).

The study emphasizes instead the improvement experienced by Bolivia, Paraguay and Suriname , analyzed in this comparative work with Costa Rica, Guatemala and El Salvador. The six countries have a note “BB”, which is below the minimum investment grade “BBB-”, but according to Standard and Poor’s the status of each is different. The sovereign debt of the Central American countries “are facing increasing credit risks,” he says.

“We have a negative outlook on our rating ‘BB’ from Guatemala and we have cut the rating of El Salvador in two steps over the past three years. These countries are trying to avoid increasing credit risks, “the statement said. The three Central American countries have seen their public finances, already fragile, “worsened by rising public deficits and government debts” as a result of a slower recovery than expected after the economic crisis and global financial erupted in 2008. S & P highlights the exposure of Central America to the U.S. and Europe as a factor that has adversely affected the region at the time to grow compared to South America, which is currently experiencing a golden age for the high prices of raw materials in a consolidated public finance context.

COMPLICATED
Despite this complicated situation, S & P highlights the fact that Costa Rica, El Salvador and Guatemala “have remained relatively strong public institutions and policies have continued predictable and market-oriented”, which has allowed them to offset their vulnerabilities.

THE FUTURE
However, the short-term future in Central America is “more challenges than opportunities,” insists the rating agency, warns that progress is needed in fiscal consolidation and further efforts to support or improve the economic outlook.

STRENGTH OF LATIN AMERICAN COUNTRIES
As part of an international situation more favorable despite the current crisis in the eurozone and the U.S. to recover from problems such as global economic engine, many Latin American countries have gained in strength antre markets after its chronic debt problems. As This example, Standard and Poor’s raised last week by the sovereign debt rating of Ecuador and Honduras, “C” to “B” and “B” to “B +”, respectively.

URUGUAY
In early April, had been the turn of Uruguay who recovered the minimum investment grade already had six other Latin American countries (Chile, Mexico, Brazil, Peru, Panama and Colombia), following a rise in sovereign debt rating of ” BB + “to” BBB-”by S & P.

Link to Original Article:

From La Nacion

Latin America Investment News on Viva Tropical