• Costa Rica Real Estate

Standard & Poor’s maintains Costa Rica sovereign debt rating at BB/B

February 26, 2015

The New York-based ratings agency Standard and Poor’s maintained its “BB/B” long and short-term credit rating for Costa Rica Thursday afternoon, adding that the outlook appears stable, according to a statement.

The company also reaffirmed its transfer and convertibility assessment for Costa Rica at “BBB-,” the agency’s lowest investment grade.

S&P’s statement was sanguine in the face of the country’s rising budget deficit, predicting that the government would be able to contain runaway debt through higher tax revenues and budget controls in the next two years. The rating agency’s forecast breaks with gloomy predictions recently from other groups, including Fitch Ratings and the Eurasia Group.

Standard & Poor’s also noted that Costa Rica would likely see an improving economy thanks to a recovering U.S. economy, the country’s largest trade partner, and low international oil prices. A stable political system and continued foreign direct investment would buffer Costa Rica during the next two years from the immediate effects of the deficit, the statement said.

“Standard & Poor’s decision show confidence in the efforts of the government to secure the approval of tax measures that will be presented to the Congress in the coming weeks,” Vice President and Finance Minister Helio Fallas said in a statement Thursday. Those measures include a bill that would establish a value-added tax.

Facebook Comments

You may be interested

United States and El Salvador sign immigration agreement
Central America
30 views
Central America
30 views

United States and El Salvador sign immigration agreement

AFP and The Tico Times - September 20, 2019

The United States and El Salvador reached an immigration agreement on Friday, the interim secretary of Homeland Security, Kevin McAleenan,…

‘I want to write my story here too,’ Navas says of PSG
Keylor Navas
24 views
Keylor Navas
24 views

‘I want to write my story here too,’ Navas says of PSG

AFP and The Tico Times - September 20, 2019

Costa Rican goalkeeper Keylor Navas debuted in the Champions League with Paris SG on Wednesday with a 3-0 victory against…

UN names Costa Rica as ‘Champion of the Earth’ for environmental efforts
Climate Change
322 views
Climate Change
322 views

UN names Costa Rica as ‘Champion of the Earth’ for environmental efforts

Alejandro Zúñiga - September 20, 2019

The United Nations has selected Costa Rica as its 2019 Champions of the Earth award for policy leadership, the organization…

Do NOT follow this link or you will be banned from the site!