Economic Image of Nicaragua Improved
As reported by the Nicaraguan media, on Thursday, February 11, 2016, the risk rating agency Standard & Poor's informed that it assigned a long-term sovereign debt rating of B+ to Nicaragua with stable outlook. This is the first time Standard & Poor's has rated Nicaragua.
Standard & Poor's bases the issued rating on the following factors: a stable economic performance in recent years, the low burden of general government debt, the country's political stability and consensus on pragmatic economic policies, low crime rate and the cooperation between the Government and the private sector manifested through dialogue and official mechanisms of consultation.
“The rating of Standard & Poor's is a further confirmation of the performance and positive outlook of the Nicaraguan economy, which has also been recognized by international financial institutions and other rating agencies. Moreover, this rating helps attract and diversify the investor base, broaden the availability of funding and reduce financial costs for both the public sector and the private sector,” the Central Bank of Nicaragua expressed.
For the economic authorities of the country, “the new rating of Standard & Poor's is part of the dialogue undertaken by the Nicaraguan authorities with major international rating agencies and is the third rating issued by such agencies, the other two ratings are issued by Moody's Investors Service (B2) and Fitch (B+)”.
Carlos Melo, representative of the Inter-American Development Bank (IDB), said the rating is positive not only for Nicaragua but also for the rest of Central America and is a recognition of the good macroeconomic environment in the country.
Meanwhile, the Economic Advisor to the Presidency, Bayardo Arce, expressed that “what this is telling the international economic community is that you can trust this country, because there is stability” and this is “good news for the Nicaraguan society”.
For his part, the president of Superior Council of Private Enterprise (COSEP), José Adán Aguerri, commented that this qualification "is a crucial element towards presenting Nicaragua in the investment world in a better way".