No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveCosta Rica's economic outlook improves

Costa Rica’s economic outlook improves

 

Citing the Costa Rican government´s declining debt burden, Standard & Poor´s Ratings Services (S&P), one of the big three credit rating agencies, raised its outlook on Costa Rican government debt to positive from stable, according to S&P.

Credit ratings measure the risk of default of particular debt issuers, in this case the Costa Rican government. Other thing being equal, the lower the risk an issuer will default on its debt obligations, the lower the interest rate it will need to pay to borrow from markets.

A positive outlook implies that economic conditions in the country are considered to be improving.

S&P affirmed its BB/B foreign currency and BB+/B local currency sovereign credit ratings for Costa Rica. The ratings agency affirmed the BB+ long-term debt rating on Costa Rica´s foreign currency senior unsecured debt reflecting both default and recovery prospects. These ratings imply Costa Rican debt is “speculative/somewhat speculative” and that an investment in Costa Rican debt is among the safest investments in debt that is investment-grade.

According to S&P, buoyant tax revenues and continued good GDP growth have contributed to a decline in gross general government debt to an expected 32 percent of GDP at the end of 2008, compared with 41 percent in 2006.

S&P also noted that the ongoing improvement in Costa Rica´s fiscal and debt profile, combined with more exchange rate flexibility and a more effective monetary policy, could reduce Costa Rica´s vulnerability to sudden external shocks, potentially improving creditworthiness.

 

Trending Now

Costa Rica’s Religious Culture Through the Eyes of a Non-Religious Expat

Costa Rica is the only country in the Americas that has an official religion—Catholicism—enshrined in its constitution. While the Constitution recognizes freedom of worship,...

Canadian Tourist Killed in Costa Rica During A Robbery Attempt

A 40-year-old Canadian man lost his life in a violent robbery at a rental home in the Los Jobos area of Tamarindo, Guanacaste, on...

Gisele Bündchen’s Summer Getaway in Costa Rica’s Santa Teresa

Supermodel Gisele Bündchen spent late June in Costa Rica, soaking up the sun and sand in Santa Teresa with her partner, Joaquim Valente, and...

Exiled Nicaraguan Journalists in Costa Rica Face Growing Harassment

Nicaragua has increased its “harassment and retaliation” against exiled journalists and their families who remain in the country, according to a report published Thursday...

Costa Rica’s Olympic Hero Claudia Poll Alleges Abuse by Famed Swim Coach

Claudia Poll, Costa Rica's only Olympic gold medalist, and two other former swimmers from the country, alleged on Monday that they suffered psychological, physical,...

Strong Earthquake Shakes Panama’s Pacific Coast, No Damage Reported

A strong earthquake struck off Panama's Pacific coast today, rattling the region but causing no reported injuries or destruction. Seismologists pegged the magnitude at...
Avatar
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica