Costa Rica’s Credit Rating Improves

June 17, 2005

COSTA Rica’s economic outlook isimproving, according to internationalcredit evaluator Standard and Poor’s(S&P). The firm has increased the country’srating from negative to stable inresponse to improved fiscal management,a decrease in the government deficit since2002, and expectations that long-debatedfiscal reform legislation will be approvedthis year.The rating means Costa Rica presentsa lower risk of defaulting on its debtbecause of a more stable economy. Theimprovement is expected to translate tolower interest rates on future debt, anincrease in the value of Costa Rican debtbonds and increased willingness for long terminvestment in those bonds, accordingto the daily La Nación.Standard & Poor’s also affirmed itsBB+ grade for long-term debts in localcurrency and BB grade for long-termdebts in foreign currency.The country’s failure to pass the taxplan caused various credit-rating agenciesto push the country’s rating to negative in2003 and keep it there in subsequent evaluations(TT, Aug. 20, 2004).Costa Rica still has a number of vulnerabilities,according to the S&P report:laxly supervised offshore banks, a highdegree of dollarization and a crawling pegexchange-rate regime.

You may be interested

Strong winds cause three deaths in Costa Rica, one in El Salvador
Weather
2053 views
Weather
2053 views

Strong winds cause three deaths in Costa Rica, one in El Salvador

AFP - December 10, 2017

Three people have died in Costa Rica, includiing two Swiss tourists, and one in El Salvador as a result of…

6 camouflaged Costa Rican creatures you probably haven’t seen
Environment and Wildlife
2456 views
Environment and Wildlife
2456 views

6 camouflaged Costa Rican creatures you probably haven’t seen

Lindsay Fendt - December 9, 2017

The jungle can be a scary place, and even for some of the fiercest of Costa Rica’s creatures, sometimes the…

National Geographic-Lindblad Expeditions ship makes first visit to Osa Peninsula
Cruises
2074 views
Cruises
2074 views

National Geographic-Lindblad Expeditions ship makes first visit to Osa Peninsula

The Tico Times - December 8, 2017

National Geographic and Lindblad Expeditions touched down for the first time on Costa Rica's renowned Osa Peninsula this week for…