Fitch cuts Guatemala view to negative

Fitch Ratings said it affirmed Guatemala's long-term foreign and local currency issuer default ratings at BB+ and revised the outlook to negative from stable.

Fitch also simultaneously affirmed Guatemala's country ceiling at BBB- and the short-term foreign currency rating at B.

The revision of the outlook to negative from stable reflects Guatemala's slow progress in addressing long standing structural weaknesses that continue to hinder growth potential and limit per capita income convergence to similarly rated peers.

The sovereign's main structural weaknesses include low human development, governance and business indicators and low savings and investment rates. Despite a track record of macroeconomic stability buttressed by a culture of conservative policymaking, the country's structural shortcomings are likely to cap Guatemala's rating to the BB category in the medium term, the agency said.

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