Fitch puts ICE on negative watch

Fitch Ratings said it placed Instituto Costarricense de Electricidad y Subsidiarias' (ICE) BB long-term foreign- and local-currency issuer default ratings on Rating Watch negative.

The negative watch mirrors the placement on watch of its ultimate parent, the sovereign of Costa Rica, Fitch explained.

The negative watch reflects acute financing constraints that may hinder the company's ability to meet budgetary obligations and debt maturities for the remainder of 2018, including a loan from the central bank, Fitch said.

Uncertainty also persists about whether lawmakers can pass effective legislation to contain the country's high and widening fiscal deficits, the agency said.

The agency said it will review the rating in the next one- to three-months once the pending fiscal reform legislation is finalized, Fitch said.

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