Business

S&P downgrades Costa Rica rating

Posted: Friday, February 17, 2012 - By Tico Times

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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Comments

Sooner or later people (nations), with money will refuse to keep helping those whom refuse to use what they have and refuse to risk anything of their own. Such is the case of a country choosing poverty and handouts over oil & mineral exploration at home. There is no longer a "cold war" to benefit the "Suiza Centroamericana", everyone is basically on their own now.
This is scary for the country. This means higher credit card rates and loan rates. Also could cause inflation to rise in the country. Seem that SandP is saying change the currancy in Costa Rica. Greece and Costa Rica are on the same paths its time for change now.

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