In the view of Moody's, Fitch and S & P, the latest projections of public debt and fiscal deficit by the Central Bank of Costa Rica, further worsen the outlook for the debt rating.
Last week the Central Bank of Costa Rica (BCCR) released a report in which it explained that for this year it is expected that the public debt with respect to the Gross Domestic Product (GDP) will reach 53.8%, and by 2019 this indicator will reach 58.4%.
According to Moody's, the country's credit rating does not reflect the current conditions of the economy, highlighting in particular the unsustainability of the fiscal deficit.
Costa Rica is running out of time to solve its high public spending problems and stop the budget deficit from continuing to grow the way it has been doing up until now.
Gabriel Torres, principal sovereign debt analyst at Moody's told Nacion.com: "We want to see a positive sign from the new government and how serious it is. We are not telling them what to do, but the situation is not sustainable. "
The rating agency's reason for the change from stable to negative is the increasing public debt and lack of fiscal reform.
Moody's believes that the country has not been able to pass a tax reform to reduce the deficit afflicting the government. "With the change we are saying there is an increased likelihood that the country's rating in the future will be lowered," said Gabriel Torres, principal sovereign debt rating analyst.