Costa Rica Coffee Guide

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.

You may be interested

News briefs: Costa Rica will handle land borders differently than airports
Costa Rica
4724 views
Costa Rica
4724 views

News briefs: Costa Rica will handle land borders differently than airports

Alejandro Zúñiga - July 9, 2020

The coronavirus crisis has transformed life in Costa Rica, which has enacted measures to protect the capacity of its health…

Costa Rica extends tourist visas until November 18
Costa Rica
3010 views
Costa Rica
3010 views

Costa Rica extends tourist visas until November 18

Alejandro Zúñiga - July 8, 2020

Costa Rica's Immigration Administration is offering foreigners extra flexibility as countries continue to restrict travel due to the coronavirus pandemic.…

Costa Rica coronavirus data for July 8, 2020
Costa Rica
21220 views
Costa Rica
21220 views

Costa Rica coronavirus data for July 8, 2020

Alejandro Zúñiga - July 8, 2020

Costa Rica confirmed 350 new cases of the coronavirus over the past day, totaling 5,836 cumulative known cases, the Health…