Fitch revises Nicaragua’s outlook to stable

Fitch Ratings said it revised Nicaragua’s outlook to stable from negative.

“The revision of the outlook reflects the stabilization of central bank reserves and commercial bank deposits, a significant fiscal adjustment and social security reform that have reduced domestic financing needs, and a pronounced external rebalancing that has eased the external financing requirement,” said Fitch in a press release.

Fitch also noted the political situation has stabilized as well. This year, the government released some demonstrators who had been arrested in April 2018.

“There has been a significant fiscal adjustment in 2019. Social security (INSS) and tax reform are projected to narrow the consolidated general government deficit to 0.5% of GDP from 3.1% in 2018. Fitch forecasts that new tax measures will lift central government revenues by 13.8% in 2019, while expenditures will be contained close to their 2018 level. Public workers did not get the usual 5% salary increase in 2019 and will not get the adjustment in 2020,” said Fitch.

Fitch affirmed Nicaragua’s long-term foreign currency issuer default rating at B-.

© 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.