Moody’s Upgrades Nicaragua

Moody’s has upgraded Nicaragua to B3 (stable) from Caa1. The agency cites improvements in the country’s main debt metrics as a result of international debt forgiveness. Nicaragua’s debt to GDP fell from over 130% in 2003 to an estimated 45% this year. However, Moody’s also says that Nicaragua’s low economic development remains a key long-term ratings constraint and that subdued long-term growth prospects and institutional concerns also constrain ratings.