...MEXICO CITY (S&P Global Ratings) June 1, 2017--S&P Global Ratings today assigned its '##' rating on the Republic of Guatemala's senior unsecured US$500 million notes due June 2027 with a coupon of 4.375%. Guatemala will use the proceeds to pay capital and interest of existing debt and the remainder to finance social and capital expenditures. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Guatemala. Our ratings on Guatemala reflect its low fiscal deficits, stable debt-to-GDP ratio, and sound monetary policy. The ratings also take into account high political fragmentation, which hampers structural reforms; high poverty levels; and weak government institutions. The negative outlook on the long-term ratings reflects our expectation that Guatemala's government institutions will remain weak, resulting in low public-sector investment and in consistently low general government revenues. This in turn could hurt the country's long-term growth prospects...
