Fitch lowers Costa Rica view to negative

Fitch Ratings said it revised the outlook on Costa Rica’s to negative from stable.

The agency also said it affirmed the Costa Rica’s senior unsecured foreign- and local-currency bonds at BB+, along with its short-term foreign-currency issuer default rating at B and country ceiling at BBB-.

The negative outlook reflects the country’s high structural fiscal deficits, slower economic growth and difficulties in implementing tax reforms, which have led to worsening debt dynamics, Fitch said.

As with various unsuccessful attempts over the last decade, congressional gridlock and adverse court rulings could delay, dilute or block fiscal reform, the agency said.

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