...from the US economic recovery and lower oil prices are unlikely to result in material uplift in creditworthiness. External finances and inflation have improved, but the outlook for growth, public finances and structural issues is more mixed. Fitch Ratings views the benefits of the new external backdrop as a broadly stabilising factor for the region in light of some negative bias in ratings in recent years. Currently, only Costa Rica is on a Negative Outlook. US Recovery Supports Growth: Fitch expects regional growth of 4.3% in 2015-2017 to outperform the Latin American region, partly supported by the US recovery. The synchronisation between Central America and the US growth reflects strong links in terms of goods and services exports, tourism, workers' remittances and foreign direct investment, all institutionalised after the approval of the DR-CAFTA trade and investment agreement in 2006. Mixed Vulnerability to Fed Liftoff: The impending US monetary tightening cycle could constrict financing...
