Fitch downgrades Nicaragua

Fitch Ratings said it downgraded Nicaragua's long-term foreign-currency issuer default rating to B from B+.

The outlook is negative.

“The downgrade and outlook change reflect increasing political instability and the corresponding deterioration of Nicaragua's investment, economic growth and public finance outlook,” the agency said in a news release.

“Declining deposits and incipient related pressure on international reserves have increased financial and macro stability risks in the context of Nicaragua's crawling peg exchange rate regime and highly dollarized financial system.”

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