News
Moody's upgrades Costa Rica's sovereign ratings
Source: Grupo Aldesa
Thursday, September 9, 2010
Moody's Investors Service has upgraded Costa Rica's government bond rating from Ba1 to Baa3. The outlook, which had been positive, has been revised to stable.
RATINGS RATIONALE
The main drivers for the upgrade are:
1) Our expectation that key government debt metrics will continue to be
well-positioned relative Baa rated peers, despite a recent deterioration
in public finances; and
2) A recently tested ability to manage external shocks and to avoid
balance-of-payments crisis. Given Costa Rica's relatively high level of
financial dollarization and a not-so-flexible exchange rate regime, a
balance of payments or financial sector crisis had been one of Moody's
concerns.