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+.
"Weak public institutions in Guatemala and a polarized political environment continue to limit its credit quality" - Standard & Poor's
An article in elperiodico.com.gt reports that "The three most important credit rating agencies internationally: Moody's, Standard & Poors and Fitch Ratings, have pointed to deficient management in Guatemala's social indicators."
The rating agency Standard & Poor's has revised its outlook on Guatemala from "stable" to "negative."
"The negative outlook reflects the likelihood that the fiscal deficit will remain above 3% of GDP and debt will continue to grow over the next few years, and the absence of measures to increase revenues and grow the economy," says Lisa Schineller , an analyst at S&P.
Quarterly Report by the Executive Secretary of the Central American Monetary Council, June 2009.
General Situation
During the first months of the year, there has been a deterioration in some economic indicators like foreign investment, remittances and external trade. Based on this, the Executive Secretary estimates that the consequences of the international crisis were felt the most in the CA-RD region in the first third of the year, situation that could worsen further in the coming months, depending on what happens in the international stage.