Moody’s revises Guatemala to negative

Moody's Investors Service said it revised the outlook on Guatemala's government bond ratings to negative from stable.

Concurrently, the agency affirmed the foreign and local currency government's issuer ratings and senior unsecured ratings at Ba1.

Moody's said the outlook revision is due to an ongoing political crisis that has rapidly escalated, triggered by corruption scandals that implicate high ranking government officials and that has led to widespread street demonstrations. The probability that domestic political events could negatively affect macroeconomic stability and government financial strength remains low, but has risen as a result of the heightened uncertainty surrounding the outcome of the political crisis, the agency said.

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