Moody's cuts Costa Rica, view to stable

Moody's Investors Service said it downgraded the government of Costa Rica's long-term issuer and senior unsecured bond ratings to B2 from B1 and changed its rating outlook to stable from negative.

The agency cited high fiscal deficits leading to an upward trend in debt metrics which will remain above rating peers and recurring funding challenges resulting from relatively large borrowing requirements.

The stable outlook rating reflects Moody's view that funding and liquidity pressures will remain contained even as debt metrics continue to rise.

In a related decision, Moody's lowered Costa Rica's long-term foreign-currency bond ceiling to Ba3 from Ba2 and the local-currency bond to Ba1 from Baa3.

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