For Fitch, the delay in vaccination campaigns constitutes a latent risk of a prolonged pandemic, which would delay the recovery of the region's economies and would cause negative pressures on the risk ratings to be issued in the coming months.
Fitch Ratings issued a bulletin for Mexico, Central America and the Caribbean on May 25, in which it warned that given the deep economic contractions in the region and the moderate recovery outlook, there are threats of negative rating pressures.
The governments of Costa Rica and Nicaragua will face greater challenges in obtaining financing in external markets, because of the lowering of their risk ratings by international agencies.
Arguing that Costa Rica reflects consistently large fiscal deficits, short-term financing needs because of a strong repayment schedule and budget financing constraints, Fitch Ratings reported on January 15 that the country's long-term foreign currency issuer default rating was downgraded from BB to B+.
More expensive external credit, deterioration of the country's image, and higher local interest rates are just some of the consequences that could result from the non-payment of $55 million to pension funds.
The decision taken by the Sánchez Cerén administration not to pay interest to pension funds on the grounds of lack of support from the opposition political party has caused not only a down grading of the debt rating by agencies such as Fitch Ratings and Standard & Poor's, but has also led the business sector to raise its voice about the seriousness of the situation and to warn about possible consequences on economic activity.
Fitch Ratings considers to reduce the sovereign debt rating if economic growth is not strengthened.
In the "Outlook 2014: Latin America Sovereign Debts" report, prepared by Fitch Ratings it is noted that El Salvador is one of the nations in the region with a negative outlook on its credit rating, which in July this year dropped to "BB-".
Elmundo.com.sv reports that "the current risk rating is the last step before reaching the group " B", where the risk of the country falling into default is much higher."
If the economic imbalance that currently affects Salvadoran finances is maintained, Fitch Ratings will once again lower their risk rating which now stands at "BB-".
Elmundo.com.sv reports: "Not even the positive outlook description outlined by the rating agency Fitch Ratings gives any encouragement over the fate of Salvadoran government debt, which until July, including pensions, reached 53.9% of the gross domestic product (GDP)".
Fitch notes that the Salvadoran government’s efforts to achieve a consolidation of its fiscal deficit are insufficient and are threatened by a weak economic outlook.
In a special report, Fitch Ratings said that El Salvador is making progress towards fiscal consolidation, but the momentum may be insufficient, given the poor prospects for economic growth.
The risk rating agency has raised the rating outlook from "negative" to "stable" based on the efforts of fiscal consolidation and stabilization of national debt.
The outlook has been "negative" from 2010 due to increasing levels of indebtedness. The rating remained at "BB".
According to the rating, the country has made progress in fiscal consolidation, stabilization of national debt and in meeting requirements for the Stand By Arrangement with the IMF.