The Superintendency of Securities is working on a proposal that would make mandatory to have a risk rating on each debt issuance registered in the panamanian market.
The initiative put forward by the authorities of the Panamanian stock market comes days after the collapse of the Panamanian RG Hotels Company, which in 2012 issued bonds with unrated debt risk, leaving investors who bought these securities unprotected.
Moody's has changed the outlook of the sovereign debt rating from stable to negative, noting the limited ability of the government to control the increased public spending and the high fiscal deficit.
From the press release by Moody's:
New York, November 19, 2015 -- Moody's Investors Service has today affirmed El Salvador's Ba3 foreign currency issuer and senior unsecured ratings and changed the outlook to negative from stable.
Despite the fact the government has acknowledged that it does not have sufficient resources to pay interest on foreign debt, the agency announced that the country´s risk rating remains unchanged, with a stable outlook.
From a press release issued by Standard & Poor's:
In our view, political instability related to corruption cases will not significantly hurt Guatemala's stable macroeconomic performance this year and in 2016.
Fitch notes that the relatively favorable external environment will not be enough for Central American countries to improve their credit ratings, which could remain stable despite fiscal problems.
From the press release by Fitch Ratings:
Fitch Ratings-New York-22 October 2015: External tailwinds are unlikely to lead to a significant uplift in Central America's creditworthiness, says Fitch Ratings in a new special report.
The agency has kept the sovereign debt rating unchanged highlighting the stability of growth and diversification of the economy, which gives the country the ability to cope with adverse external conditions.
From the press release by Standard & Poor's:
Panama's continued strong economic growth prospects, increasing economic diversification and resilience, and moderate net general government debt burden support our ratings.
In the view of Standard & Poor's the resignation of Perez Molina and the customs fraud will not have a negative impact on debt ratings in the short-term.
From a statement issued by Standard & Poor's:
Mexico City, September 3, 2015.- Otto Perez Molina resigned from the presidency of Guatemala after the National Congress withdrew his legal immunity. Perez Molina now faces a legal process to defend himself against accusations that he was involved in the case of customs fraud, which also involves other key members of his government.
The agency improved the rating from B to B + highlighting the process of fiscal consolidation in place since 2014 but warned of weak internal controls and limited transparency in the public sector.
From a statement issued by Standard & Poor's:
OVERVIEW
We expect that continued implementation of recent fiscal and energy-sector reforms will contain Honduras' general government fiscal deficit to around 4% of GDP over the next two years, helping to keep net general government debt below 40% of GDP over the same period.
After lowering the country's sovereign debt rating, the ratings agency also lowered the rating for the electricity company, anticipating difficulties in collecting payments from the Salvadoran government subsidies.
From the press release by Fitch Ratings:
Fitch Ratings-Monterrey-14 July 2015: Fitch Ratings has downgraded AES El Salvador Trust II's (AES El Salvador) foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB' and revised the Rating Outlook to Stable from Negative. In addition, Fitch has downgraded the company's USD310 million senior unsecured notes due 2023 to 'B+/RR4' from 'BB'.
Better ability to handle fiscal accounts and an upward trend in foreign investment are the factors that the rating based its upgrade on, changing the debt rating from B3 to B2.
From a press release issued by Moody's:
New York, July 10, 2015 -- Moody's Investors Service has upgraded Nicaragua's foreign and local currency government's issuer ratings to B2 from B3; outlook remains stable.
The agency said the growing fiscal deficit, low economic growth, political polarization and weak business confidence, were the triggers for the downgrading of long-term debt.
Fitch Ratings-New York-09 July 2015: Fitch Ratings has downgraded El Salvador's long-term foreign and local currency IDRs to 'B+' from 'BB-'. Fitch has also downgraded the issue ratings on El Salvador's senior unsecured foreign and local currency bonds to 'B+' from 'BB-'.
Noting uncertainty and political instability in the country as the main risk factor for the economy, the rating remains at BB with a stable outlook.
From the press release by Fitch Ratings:
Fitch Ratings-New York-19 June 2015: Fitch Ratings has affirmed Guatemala's long-term foreign- and local-currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Outlook.
The rating agency has changed the outlook on the rating of foreign debt from stable to negative due to the political crisis in the Guatemalan nation.
From a press release issued by Moody's:
New York, May 26, 2015 -- Moody's Investors Service has today revised the outlook on Guatemala's government bond ratings to negative from stable. Concurrently, Moody's has affirmed the foreign and local currency government's issuer ratings and senior unsecured ratings at Ba1.
In the latest update to its emerging market index the entity changed its view of the relative weight of Costa Rican bonds from "Marketweight" to "Underweight".
An article in Elfinancierocr.com notes that "... The opinion of JP Morgan in making this move is centered around the fiscal deterioration suffered by Costa Rica and they argue that this has been sustained and that there is little chance that this trend will be reversed.
Basing its decision on the progress being made in the economy in fiscal matters, Moody's has raised the outlook rating from positive to stable.
From the press release by Moodys:
New York, May 11, 2015 -- Moody's Investors Service has today revised the outlook on Honduras' government bond ratings to positive from stable. Concurrently, Moody's has affirmed the foreign and local currency government's issuer ratings and senior unsecured ratings at B3..
Fitch, Moody's and Standard & Poor's are once again warning of the need to generate more revenue and cut public spending in order to avoid "negative consequences for ratings."
On average agencies provide a period of 12-18 months for the fiscal deficit and public debt to stabilize, while clarifying that "... the presentation of tax reforms is not enough to ensure a good perspective for the country.