S&P rates Guatemala notes BB-

S&P said it assigned a BB- rating on Guatemala's $1.2 billion senior unsecured notes.

The agency said $500 million of the notes will be due in May 2029 and $700 million due in May 2049.

The proceeds will be used to pay interest and principal on its outstanding debt obligations with the remainder used to finance social and infrastructure programs 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 an opinion that recurrent political instability and weak government institutions continue to affect Guatemala's economic growth prospects, S&P said.

GDP growth at the current level would be insufficient to consistently reduce the country's poverty level, the agency said.

On the other hand, S&P said it expects that a limited fiscal deficit and a balanced current account over the next two years will lead to a low debt level.

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