Guatemala's US$1.2 Billion Notes Rated 'BB-'

MEXICO CITY (S&P Global Ratings) April 22, 2020--S&P Global Ratings today assigned its 'BB-' issue rating to Guatemala's US$1.2 billion senior unsecured notes--US$500 million due in April 2032 and US$700 million due in June 2050. Guatemala will use the proceeds from the issuance for general budgetary purposes, including repayment of debt, and to finance or refinance, in whole or in part, new or existing eligible social investments. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Guatemala. We expect that the global spread of COVID-19 will have unprecedented implications for Guatemala's economic and fiscal prospects in the near term. Given its persistently narrow tax base, as well as shortfalls in basic public

...April 22, 2020 MEXICO CITY (S&P Global Ratings) April 22, 2020--S&P Global Ratings today assigned its '##-' issue rating to Guatemala's US$1.2 billion senior unsecured notes--US$500 million due in April 2032 and US$700 million due in June 2050. Guatemala will use the proceeds from the issuance for general budgetary purposes, including repayment of debt, and to finance or refinance, in whole or in part, new or existing eligible social investments. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Guatemala. We expect that the global spread of COVID-19 will have unprecedented implications for Guatemala's economic and fiscal prospects in the near term. Given its persistently narrow tax base, as well as shortfalls in basic public services and physical infrastructure, Guatemala has limited fiscal room to address the shock without increasing its debt burden. On the other hand, Guatemala's solid external position, moderate general government debt...

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