Standard & Poor's attributes the upgrade in the long-term debt rating, from B + to BB-, to greater fiscal flexibility, and to the limited increase in the public debt.
From a statement issued by Standard & Poor's:
OVERVIEW
The Honduran government's commitment to strengthen public finances has improved Honduras' fiscal flexibility.
We expect broad continuity in economic policies and contained debt increases following national elections in November 2017.
The government is preparing a bill for the Assembly to authorize a debt issue on the international market next year.
The Ministry of Finance is considering raising money abroad in order to avoid pushing interest rates up in the local market.If the Legislative Assembly approves the bill, the government will turn to the international market to raise the 1.2 trillion colones that it needs to pay for domestic debt securities due next year.
Based on the improvements that have been made to regulations, the rating agency Standard & Poor's has raised the country's banking industry's risk perspective to stable.
From a statement issued by the Ministry of Economy and Finance:
Standard & Poor's Global Ratings (S & P) has upgraded, to "stable", the risk perspective for Panama's banking industry and highlighted its strength.
The Superintendency of the Securities Market will start asking for a risk rating in all applications for registration of securities.
From a statement issued by the Superintendence of the Securities Market:
May 10, 2017. - The Superintendence of the Securities Market (SMV) will require a risk rating as part of the documents that must be included in any application for registration of securities, in accordance with the provisions of Agreement 3-2017 of April 5, 2017, "Amending Agreement 2-2010 of April 16, 2010 on the Procedure for the Submission of Applications for Securities Registration and for Termination of Registration to the SMV and other provisions" published in the Official Newspaper La Gaceta No. 28259-A of April 17, 2017.
Fitch Ratings has raised the Salvadoran debt rating to CCC, but warned that political polarization could continue to affect the approval of new long-term loans.
The decision to raise the IDR risk rating in local currency was taken by Fitch Ratings after the government paid interest on Pension Funds Certificates (CIPs) to private pension funds on April 28.
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 has downgraded El Salvador's Long-term (LT) Local Currency Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'B'/Negative.
From a report by Fitch Ratings:
Fitch Ratings-New York-10 April 2017: Fitch Ratings has downgraded El Salvador's Long-term (LT) Local Currency Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'B'/Negative.
"Structural weaknesses will continue to constrain Guatemala's economy and credit rating over the medium term"
From a press release by Fitch Ratings:
Fitch Ratings-New York-31 March 2017: Structural weaknesses will continue to constrain Guatemala's economy and credit rating over the medium term, says Fitch Ratings. Guatemala's growth rate will rise during 2017 as the effects of the 2015 political crisis gradually fade.
Fitch Ratings, "Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center. "
From a report by Fitch Ratings:
Fitch Ratings-San Salvador/New York-15 March 2017: Reputational and conduct risk will remain key issues for Panamanian banks in 2017 owing to the interconnectedness of the regional financial system and ongoing high profile corruption cases that have affected multiple countries in Latin America, says Fitch Ratings. Reputational risk events could put broad pressure on funding access and damage Panama's position as a regional financial center.
In line with warnings from other ratings agencies regarding the serious fiscal problem and the lack of political will to solve it, Moody's has downgraded its rating from Ba1 to Ba2 with a negative outlook.
New York, February 09, 2017 -- Moody's Investors Service has today downgraded Costa Rica's government bond rating by one notch to Ba2 from Ba1, and maintained the negative outlook on the rating.
In line with recent warnings issued by other credit rating agencies regarding the country's bleak fiscal outlook, Fitch has reduced the debt rating from B + to B, and changed the outlook to negative.
From a press release issued by Fitch Ratings:
Fitch Ratings-New York-01 February 2017: Fitch Ratings has downgraded El Salvador's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B' from 'B+'.
After last weeks downgrading of the country 's sovereign rating to BB, Fitch Ratings has downgraded the risk rating of six Costa Rican banks.
The agency downgraded the banks Banco Nacional, BCR, Bicsa and Banco Popular, all owned by the Costa Rican government, from BB + with a negative outlook to BB with a stable outlook.
Fitch Ratings has downgraded Brazilian construction firm from B- to CC, arguing that the revelations about bribes "have exacerbated its reputational risk".
From a press release by Fitch Ratings:
Fitch Ratings-Sao Paulo-17 January 2017: This is a correction of a release published Jan. 17, 2017. It corrects the rating for the USD800 million senior unsecured notes due 2023.
The debt rating has been lowered from BB + to BB, due to the high fiscal deficit and the lack of implementation of reforms to start correcting the problem.
From a press release by Fitch:
Fitch Ratings-New York-19 January 2017: Fitch Ratings has downgraded Costa Rica's Long-Term Foreign- and Local-Currency IDRs to 'BB' from 'BB+'. The Outlooks were revised to Stable from Negative.
Two months after reducing the rating from B + to B, Standard & Poor's has now reduced the note to B-, with a negative outlook.
From a press release by Standard & Poor's:
OVERVIEW
El Salvador's liquidity has deteriorated significantly because of protracted negotiations between the government and opposition parties on a comprehensive set of fiscal reforms that has weakened debt management.