Bulletin: Costa Rica's Banking Industry Country Risk: Economic Risk Trend Revised To Positive On Stabilizing Asset Quality

MEXICO CITY (S&P Global Ratings) May 23, 2024--Following its recent review of the Banking Industry Country Risk Assessment (BICRA) for Costa Rica (BB-/Stable/B) amid improving economic fundamentals and stabilizing asset quality metrics, S&P Global Ratings revised the economic risk trend to positive from stable. Moreover, amid easing credit conditions, we revised our assessment of credit risk in the economy to a stronger category. Although we don't currently rate any banks in Costa Rica, the rated banks with exposure to the country were not affected by this review. The anchor for banks operating only in Costa Rica remains at 'bb-', and the industry risk remains stable. We expect the banking system's economic imbalances to abate, reflecting controlled asset quality. The country's

...Costa Rica To From BICRA group 8 8 Economic risk 7 7 Economic resilience High risk High risk Economic imbalances High risk High risk Credit risk in the economy High risk Very high risk Industry risk 8 8 Institutional framework High risk High risk Competitive dynamics Extremely high risk Extremely high risk Systemwide funding High risk High risk Trend Economic risk Positive Stable Industry risk Stable Stable This report does not constitute a rating action....

Bulletin