Fitch rates Guatemala bond BB+

Fitch Ratings said it assigned a long-term foreign-currency rating of BB+ to Guatemala's $700 million 5¾% global bond due June 6, 2022.

The rating is in line with Guatemala's foreign-currency issuer default rating.

The 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, Fitch said.

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, the agency said.

Nonetheless, Guatemala's financing needs remain lower than its peers supported by its low debt burden, Fitch said.

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