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   - Photo via S&P -
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Published on Monday, February 27,
2023
By the A.M. Costa Rica staff
The rating agency Standard & Poor's (S&P) upgraded Costa Rica's credit rating. They increased from a “B” to a “B+” rating.
The improvement in the credit rating means that there is less risk for international investors.
As a credit rating agency, S&P issues credit ratings for the debt of public and private companies, and other public borrowers such as governments and governmental entities.
The company rates borrowers on a scale from A to D. For some borrowers, the company may also offer guidance (termed a "credit watch") as to whether it is likely to be upgraded (positive), downgraded (negative) or uncertain (neutral).
According
to the Ministry of Finance, S&P
upgrades due to strong financial
results and a stable outlook. "Costa
Rica generated its first primary
(non-interest) fiscal surplus in
more than a decade on strong
revenues and restrained spending,"
S&P said in its statement. This
increase in the rating is a vote of
confidence for the fiscal policy
carried out by the Government,
according to Nogui Acosta-Jaén,
Minister of Finance. "We will
continue to make significant efforts
to maintain tax collection, reduce
tax evasion and contain public
spending," he said. Recently,
another international institution
the Organisation for Economic
Co-operation and Development,
OECD, issued that Costa Rica’s
economy has made remarkable
progress in recent years. They
said, the country is performing well
in the face of global challenges,
but to safeguard its achievements
and continue to improve living
standards, the government will need
further reforms to strengthen public
finances, boost productivity and
improve education outcomes. -----------------
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