Costa Rica Ratings Affirmed After Chinchilla Win

S&P has affirmed Costa Rica’s BB/B foreign currency ratings and stable outlook after Laura Chinchilla, of the National Liberation Party, won presidential elections Sunday. Credit analyst Joydeep Mukherji says that “the stable outlook reflects our expectation that the next administration of president-elect Chinchilla will maintain stability in key economic policies.” He adds that “the recent increase in the general government fiscal deficit likely will be reversed this year as tax revenues rise along with a recovery in GDP growth. As a result, the government’s debt burden likely will remain stable in coming years.”