LatinNews Daily - 7 November 2023

* Costa Rica’s finance ministry has announced that the government led by President Rodrigo Chaves had issued US$1.5bn worth of bonds on international markets – the second such issuance this year. According to a finance ministry statement, the government received offers worth a total of US$5.14bn which it said demonstrated “the confidence of international markets in the government’s actions.” The government last issued US$1.5bn worth of international bonds in March this year – at which time international credit ratings agency Fitch pointed out that this was the first approval of bond issuances since 2019. In November 2022 Costa Rica’s 57-member unicameral legislature approved legislation authorising the government to issue up to US$5bn in international bonds over the next three years in order to cover upcoming financial obligations. In its statement following the latest bond issuance, the finance ministry highlighted as other signs of international confidence, the decision announced on 3 November by international credit ratings agency Moody’s to upgrade Costa Rica’s ratings to B1 from B2 and change its outlook to positive from stable. Meanwhile on 27 October another credit ratings agency, Standard & Poor’s (S&P) raised its long-term foreign and local currency sovereign credit ratings on Costa Rica to ‘BB-’from ‘B+’ with a stable outlook. According to a statement explaining its decision, S&P underlines that Costa Rica's “external profile has strengthened on solid exports of goods and services, a larger liquidity buffer as the government posts a primary (non-interest) fiscal surplus for a second consecutive year, and dynamic economic growth” which it forecasts to average 3.4% in 2023-2026.