Fitch: ICE outlook now negative

Fitch Ratings said it has affirmed Instituto Costarricense de Electricidad y Subsidiarias' (Grupo ICE) foreign- and local-currency issuer default ratings at BB+ as well as its national-scale ratings at AAA(cri) and AAA(slv). The outlook was revised to negative from stable.

These rating actions follow the revision of the sovereign rating of Costa Rica to negative from stable on Jan. 22. This revision reflects Costa Rica's high structural fiscal deficits, slower economic growth and difficulties in implementing tax reforms over the last decade have led to worsening debt dynamics.

Grupo ICE’s ratings reflect the strong linkage between the company and the government, which derives from government's full ownership and implicit and explicit support.

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