Long-standing political stability, with relatively strong institutions and more of a general respect for the rule of law than found in peer credits. A highly diversified economy, with a per capita GDP of US$4,379, which is almost twice that of the 'BB' median. A large, unsupervised offshore banking sector and a high level of dollar lending. Monetary policy that is constrained by quasi-fiscal losses at the central bank, a crawling peg exchange-rate regime, and a high level of dollarization. Poor external liquidity. The ratings on the Republic of Costa Rica reflect improved fiscal management over the last year and the likely passage of fiscal reform that is expected to yield up to 2% of GDP in 2006 in further revenue,
