The Central Bank awarded bills denominated in Córdobas for an amount equivalent to $17 million, and another $8 million in an auction held on April 25, 2018.
From a statement issued by the Central Bank:
April 25, 2018.The Central Bank of Nicaragua (BCN) reports that on April 25, 2018, in the BCN's auction of bills it was decided to:
Standard & Poor's has maintained the rating of B+ for long-term sovereign debt, arguing that economic growth is stable and the burden of public debt remains moderate.
From a statement issued by Standard & Poor's:
On Feb. 16, 2018, S&P Global Ratings affirmed its 'B+' long-term local and foreign currency sovereign credit ratings on the Republic of Nicaragua.
In Nicaragua, the Ortega administration has authorized raising the maximum limit allowed for the central government's debt to $1.170 billion.
Through a decree published in the official newspaper, La Gaceta, the Executive Power has authorized raising the maximum limit of debt that the central government can take on by $60 million.
The rating agency highlights growth at rates of 5% achieved in the last five years, but estimates that in 2017-18 this will fall to 4.5%, partly due to the effect of a reduction in financial flows from the program with Petrocaribe.
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-23 August 2017: Fitch Ratings has affirmed Nicaragua's Long-term foreign currency Issuer Default Ratings at 'B+' with a Stable Outlook.
Fiscal stability and the expectation that the necessary measures will be taken to mitigate the impact of eventual external shocks, was the justification given by Moody's when deciding to raise the outlook for the debt rating from stable to positive.
From a report by Moody´s:
Global Credit Research - 20 Jul 2017
New York, July 20, 2017 -- Moody's Investors Service has today affirmed the government of Nicaragua's B2 foreign and local currency issuer ratings and changed the outlook to positive from stable.
The rating agency has kept the debt note at B2 with a stable outlook, but warned that the economy could face potential obstacles in the international political arena.
From a statement issued by the Central Bank of Nicaragua:
Moody's Investors Service updated the Credit Opinion for Nicaragua on Wednesday, May 24, 2017, maintaining its long-term sovereign debt rating in domestic and foreign currency at "B2" with a stable outlook.
The countries facing the greatest risk of fiscal unsustainability within three years are El Salvador and Honduras, followed by Costa Rica and with less risk, Nicaragua and Panama.
From the "EconomicOutlook"section of the V Report on the State of the Region 2016:
Noting the political system's inability to agree on fiscal issues, Standard & Poor's has downgraded, from BB to BB-, the rating for the country's long-term debt, giving it a negative outlook.
Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative
25 Feb 2016
Source: Standardandpoors.com
OVERVIEW
The combination of growing spending pressures and lack of tax reform has weakened Costa Rica's public finances and raised its vulnerability to
The sovereign rating B + with stable outlook is based on the "economic performance, low debt burden of the government, political stability and partnership between government and the private sector through dialogue".
From a statement issued by the Central Bank of Nicaragua:
The Republic of Nicaragua has low per capita income, monetary policy rigidities, and vulnerability to external shocks.
For the first time in nine years, the Federal Reserve has raised the benchmark interest rate, by 0.25%, starting off a process of a gradual adjustment which will make credit more expensive.
After seven years of interest rates at historical lows, signs of recovery in the US economy have led the Federal Reserve to announce the first upward adjustment in the federal funds rate, the main reference rate for structuring interest rates in the United States and around the world.
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.
With the exception of improvements in Nicaragua and Honduras, in the rest of the Central American countries problems in public finances range from latent in Panama and already serious in Guatemala, to critical in Costa Rica and El Salvador.
From the report "Macrofiscal Profiles: 4th Edition" by the Central American Institute for Fiscal Studies (Icefi):
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 average tax burden for the region is 13.4% of GDP, while the average public expenditure increased from 18.7% in 2013 to 19.2% at the end of 2014.
From the Introduction of the report Macrofiscal profiles in Central America, from Instituto Centroamericano de Estudios Fiscales (Icefi):
The fiscal situation has worsened in Central America in recent months, mainly due to a structural lack of sufficient resources to meet the needs of Central Americans and realize many of the commitments made by governments.