From a statement issued by the Bank of Guatemala:

June 2018. Moody's Investors Service maintains the credit risk rating for Guatemala at Ba1 with a stable outlook.  

The rating agency Moody's Investor Services published its annual report on Guatemala, in which it maintains the country's credit risk rating at Ba1, with a stable outlook. Moody's indicates that Guatemala's rating is the result of a long history of fiscal and monetary policies characterized by prudent management, as well as a demonstrated economic resilience to internal and external shocks. Moody's considers that the aforementioned aspects compensate, to some extent, the fact that Guatemala has a weak institutional framework and low income levels.  

The stable outlook reflects expectations of moderate economic growth and the commitment of the government to maintaining prudent fiscal and monetary policies, which will contribute to maintaining a level of public debt around the observed rate (24% of GDP), despite the pressures that could arise to meet social needs. 

Read full statement (in Spanish).

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Threats to Risk Rating

July 2019

Institutional problems and lower levels of economic growth compared to other countries with the same risk rating, could cause in the future a degradation of Guatemala's debt rating.

Although in its last evaluation Moody's decided to keep Guatemala's credit rating at Ba1 with a stable outlook, arguing that the economy reports stable growth, and that a prudent management of monetary and fiscal policy has been made, there are some threats for the rating to degrade.

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