CentAm: Constitution Reform A Risk To Ratings

BMI View: Emboldened by recent successes in Bolivia, Ecuador, and Venezuela, an increasing number of Central American governments are making noises about constitutional reform. Our concern is that reform proposals are largely being pursued to consolidate executive power and distract the electorate from the acute economic downturn underway. If these reforms are acted upon, we warn that a deterioration in the region's political risk profile - particularly in the 'characteristics of polity' sub-component of our ratings - would be on the cards.

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