Moody's lifts Guatemala outlook to positive

Moody's Investors Service said it changed the outlook on the government of Guatemala's Ba2 foreign currency bond rating to positive from stable in light of a strengthening balance-of-payments position and prospects for continued economic growth.

An outlook change to positive from stable was also made to Guatemala's Ba1 foreign currency country ceiling for bonds and the Ba3 ceiling for foreign currency bank deposits.

Moody's said a narrowing of the current account deficit has been supported by a sharp rise in emigrant remittances, which increased to $3 billion in 2005 from $600 million in 2001 and accounted for more than 35% of total current account revenues while covering 55% of Guatemala's trade deficit.

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