S&P Sees Guatemala Slowdown

S&P says it has revised its outlook rating for Guatemala to stable from positive. “We revised the outlook to stable to reflect the slowdown of the encouraging momentum seen in both Guatemala’s tax collections and GDP growth in the last two years,” explains S&P credit analyst Roberto Sifon Arevalo. He also notes he expects tax revenues as a percentage of GDP to be about 11.7% in 2008, lower than in prior years and likely remaining low in 2009. S&P also cut its GDP growth forecast for 2008 and 2009 to 3.8% and 3.5%, respectively. In addition, the agency affirmed its BB/B foreign currency and BB+/B local currency sovereign credit ratings and its BBB minus transfer and convertibility assessment on the country.