Sound Performance, But Ratings Upgrade Unlikely

July 2008 | Economic Analysis

BMI View: The positive outlook awarded by Standard & Poor's (S&P) on Costa Rica's 'BB+' long-term credit rating is testament to the Arias administration's track record of prudent economic policy and solid fiscal results. That said, don't expect a ratings upgrade anytime soon. With the country smarting from financial market turbulence in the US and soaring global commodity prices, its ability to pay is unlikely to improve sufficiently to warrant a move by the ratings agencies, in our view.

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