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Moody's
According to local ratings agencies the reason the country has not reached investment grade is weakness in its socio-economic indicators.
“Additional weak spots are its tax burden, a vulnerable legal system and questionable infrastructure,” according to Sigloxxi.com. “The only Latin American countries with an investment grade rating are Chile, Brazil, Mexico, Peru and Panama”.
Source: sigloxxi.com
More on this topic
May 2010
The company raised Nicaragua's foreign currency government bond rating to B3 from Caa1.
"The upgrade of the foreign currency bond rating unifies that rating with its domestic currency counterpart," said Moody's Vice President Gabriel Torres. "This action reflects our view that, with rare exceptions, a government is equally likely to default on its domestic and foreign currency obligations."
February 2012
Fitch Affirms Costa Rica’s International Rating as 'BB +', Outlook Stable
Fitch Ratings - New York - February 14th , 2012: Fitch Ratings has affirmed the International Ratings (IDR) and the Country Ceiling of Costa Rica, as detailed below:
- Classification of long-term foreign currency 'BB +';
July 2010
Fitch Ratings has announced that the country’s long term foreign and local currency rating remains “BB” with a negative outlook.
Fitch has also announced El Salvador’s short term rating as “B” and the country’s rating as “BBB-”.
El Salvador’s risk profile is a function of its monetary stability (helped by its official dollarization), a good history of structural reform, a stable financial system and the continuing support of multinational institutions. In addition, the country has coped well with the global financial crisis and unprecedented domestic political transition, in which the left-wing FMLN government took power after approximately 20 years of rule by the right-leaning ARENA party.
June 2010
Moody's Investors Service on Wednesday upgraded Panama's sovereign ratings to investment grade of Baa3 from Ba1.
The change is based on a significant improvement in the country's fiscal and debt positions.
"The anticipated positive impact of fiscal policy initiatives on government accounts and prospects for sustained economic growth are at the core of the upgrade," said Alessandra Alecci, Moody's vice president and senior analyst. "The Panama Canal expansion and an ambitious infrastructure investment program are likely to support strong economic growth in the next few years, boding well for debt dynamics," added Alecci. The outlook is stable.
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