Moody's puts Costa Rica on downgrade review

Moody's Investors Service said it placed the government of Costa Rica's Ba2 long-term issuer ratings and the Ba2 senior unsecured bond ratings on review for downgrade.

The downgrade review considers the prospects of continued worsening of fiscal and government debt indicators, coupled with evidence of increasing funding pressures, Moody's said.

The agency also has reservations about the government's ability to implement an effective fiscal consolidation plan and revert negative fiscal trends.

Costa Rica has been reporting large government deficits for years and Moody's said it expects the 2018 fiscal deficit will end at 7.2% of GDP, compared to 4% of GDP in 2011.

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