Government of Costa Rica: Cyberattack disabling key government services is credit negative

Government of Costa Rica: Low liquidity buffers and debt affordability constrain sovereign credit profile despite payment of 2023 global bond - Issuer Comment – 2023/02/06 – US$ 200.00 – ...*Dashed bar in 2023 represents most recent payment Sources: Ministerio de Hacienda de Costa Rica and Moody's Investors Service...

Government of Costa Rica B2 stable: Update following methodology update - Credit Opinion – 2022/12/13 – US$ 250.00 – ...Costa Rica's rating reflects the balance of a relatively wealthy and dynamic economy with the large increase in the country's debt burden and substantial deterioration in debt affordability since 2010. Low debt affordability is the biggest credit challenge, with interest payments of more than 30% of revenue in 2021. Additionally, the sovereign has continually struggled to maintain an adequate fiscal liquidity buffer, more recently brining into question its ability to meet its January 2023 eurobond maturity....

Government of Costa Rica: Sovereign expected to meet January 2023 global bond maturity, but funding yet to be completed - Issuer Comment – 2022/11/14 – US$ 200.00 – ...Costa Rica (B2 stable) faces a $1 billion principal payment on a global bond that comes due on 26 January 2023 ¡ the next international bond amortization of $500 million is not due until 2025. Our base case scenario is that the sovereign will meet next year's payment in full and on time, relying on a combination of current savings and multilateral and bilateral lending. However, multilateral and bilateral loans require approval from the Legislative Assembly, which is still pending and would have to be obtained before the end of the year. If the approval process is delayed, the government would be forced to tap domestic funding sources to meet in full the upcoming payment....

Government of Costa Rica: FAQ on the sovereign credit implications of recent cyberattacks - Issuer In-Depth – 2022/06/30 – US$ 750.00 – ...In early April, after a presidential election, the government of Costa Rica (B2 stable) suffered a cyberattack by the Conti ransomware group. The attack significantly affected key government agencies, disabling access to digital government services and operations. In addition, the government suffered another cyberattack in May by the HIVE ransomware group, which severely affected the country's publically run healthcare system. In this report, we asses the impact of these events and the government's response, drawing conclusions about the potential implications for Costa Rica's credit profile. + How did the cyberattacks affect Costa Rica's fiscal accounts? The government temporarily lost its ability to digitally collect and verify tax payments from both individuals and businesses, digitally process import duties and forms, and track general revenues and expenditures. We expect the fiscal deficit to remain close to our forecast of 4.8% of GDP, with risks to the downside. By year-end 2022,...

Government of Costa Rica B2 stable: Regular update - Credit Opinion – 2022/06/09 – US$ 250.00 – ...Costa Rica's rating reflects the balance of a relatively wealthy and dynamic economy and strong institutions with the large increase in the country's main debt metrics since 2010. Under the current IMF program, the fiscal deficit decreased to 5% of GDP in 2021 while the debt burden has stabilized below 70% of GDP. Low debt affordability is the biggest credit challenge, with interest payments of more than 30% of revenue in 2021....

Government of Costa Rica B2 stable: Annual credit analysis - Issuer In-Depth – 2022/02/03 – US$ 750.00 – ...The credit profile of Costa Rica reflects the balance of a relatively wealthy and dynamic economy and relatively strong institutions with the large increase in the country's debt metrics since 2010. Under the current IMF program the fiscal deficit decreased to 5% of GDP in 2021 from 8% in 2020. Low debt affordability will remain the biggest credit challenge, with interest payments at 30% of revenue in 2021, almost triple the median for sovereigns with a B rating. Costa Rica's elevated debt burden and limited debt affordability will require several years of fiscal adjustment for the debt trajectory to reach a sustainable path. In July 2021, the Costa Rican Congress approved an agreement with the International Monetary Fund (IMF) for a 36- month program under the Extended Fund Facility (EFF) to support Costa Rica's recovery and stabilize its economy. The agreement will provide $1.8 billion in concessional financing to the government to support the implementation of corrective fiscal measures....

Government of Costa Rica B2 stable: Update following outlook change to stable from negative - Credit Opinion – 2021/12/09 – US$ 250.00 – ...Costa Rica's rating reflects the balance of a relatively wealthy and dynamic economy and relatively strong institutions with the large increase in the country's main debt metrics since 2010. Under the current IMF program the fiscal deficit will decrease to 6% of GDP in 2021 from 8% in 2020. Low debt affordability will remain the biggest credit challenge, with interest payments at nearly 33% of revenue in 2021, almost triple the median for sovereigns with a B rating....

Moody's changes Costa Rica's outlook to stable, affirms B2 ratings - Rating Action – 2021/12/08 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Government of Costa Rica B2 Negative : Regular Update - Credit Opinion – 2021/09/10 – US$ 250.00 – ...Costa Rica's credit profile balances its comparatively high national income against a large fiscal deficit, a growing debt burden and high funding needs. The country's fiscal deficit was above 8% in 2020 as a result of the coronavirus pandemic. High deficits and low debt affordability will remain among its biggest credit challenges, with interest payments at nearly 35% of revenue in 2020, almost triple the median for sovereigns with a B rating....

Government of Costa Rica: Approval of IMF agreement gives Costa Rica financing and institutional support for difficult fiscal consolidation agenda - Issuer Comment – 2021/07/27 – US$ 200.00 – ...Savings estimated provided by the government of Costa Rica in February 2021 Source: Ministry of Finance of Costa Rica...