S&P rates Guatemala notes BB

S&P said it assigned a BB rating on the Republic of Guatemala's senior unsecured $500 million notes due June 2027 with a coupon of 4.375%.

The proceeds will be used to pay capital and interest of existing debt, with the remainder to finance social and capital expenditures, S&P said.

The rating on the notes is the same as the long-term foreign-currency sovereign credit rating on Guatemala, the agency said.

The ratings reflect its low fiscal deficits, stable debt-to-GDP ratio and sound monetary policy, S&P said.

The ratings also consider the country's political fragmentation, which hampers structural reforms; high poverty levels and weak government institutions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.