NEW YORK (Standard&Poor's CreditWire) April 23, 1999--Standard&Poor's today affirmed its double-'B' long-term foreign currency sovereign and senior unsecured credit ratings on the Republic of Costa Rica. Standard&Poor's also affirmed its double-'B'-plus long-term local currency sovereign credit rating on Costa Rica. Additionally, Standard&Poor's affirmed its single-'B' short-term local and foreign currency credit ratings on the republic. The outlook remains stable. The ratings remain constrained by Costa Rica's: -- Rapidly growing and inadequately regulated banking system. Domestic credit to the private sector grew by 47.7% in nominal terms in 1998, and excessive lending by state-owned banks raises the contingent liability to the sovereign in the event of failures of large banks. A virtually unregulated
