San José, Costa Rica, since 1956

S&P downgrades Costa Rica rating

Costa Rica received a local-currency credit rating of BB by Standard & Poor’s. The rating is two levels below investment downgrade, and down from its previous rating of BB+, according to Bloomberg.

The news agency reported the grade was a result of the country’s “limited monetary flexibility” and increases in government spending. S&P cited Costa Rica’s monetary policy, which lacks flexibility because of a “high level” of dollarization in the economy.

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