(The following statement was released by the rating agency)
May 30 - Fitch Ratings has assigned a long-term foreign currency rating of ‘BB+’ to Guatemala’s USD700 million global bond (5.75% coupon) maturing June 6, 2022.
The rating is in line with Guatemala’s foreign currency Issuer Default Rating. Guatemala’s ‘BB+’ ratings are supported by the country’s record of macroeconomic stability, solid debt repayment and its low public and external debt burdens relative to ‘BB’ peers.
Despite Guatemala’s history of conservative fiscal management, significant fiscal consolidation will be difficult to achieve due to expenditure rigidity and the scope of structural problems the country faces. Nonetheless, Guatemala’s financing needs remain lower than its peers supported by its low debt burden and that a significant portion of its external debt is owed to multilateral institutions. (Caryn Trokie, New York Ratings Unit)