Guatemala's US$500 Million Notes Rated 'BB-'

MEXICO CITY (S&P Global Ratings) Aug. 4, 2022--S&P Global Ratings today said it assigned its 'BB-' issue rating to Guatemala's US$500 million notes due in 2029 at a 5.25% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Guatemala (BB-/Positive/B). The sovereign will use the issuance proceeds for general budgetary purposes, including to refinance public indebtedness. The ratings on Guatemala are based on our view of its still-developing public institutions and a challenging political environment that constrains policymaking effectiveness. They also incorporate the important economic recovery following the pandemic shock. Further steps to promote long-term growth and address high social needs would be key to substantially reduce the country's high

...August 4, 2022 MEXICO CITY (S&P Global Ratings) Aug. 4, 2022--S&P Global Ratings today said it assigned its '##-' issue rating to Guatemala's US$500 million notes due in 2029 at a 5.25% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Guatemala (##-/Positive/B). The sovereign will use the issuance proceeds for general budgetary purposes, including to refinance public indebtedness. The ratings on Guatemala are based on our view of its still-developing public institutions and a challenging political environment that constrains policymaking effectiveness. They also incorporate the important economic recovery following the pandemic shock. Further steps to promote long-term growth and address high social needs would be key to substantially reduce the country's high poverty level. On the other hand, Guatemala's solid external position, moderate general government debt to GDP, and sound monetary policy constitute relative credit strengths...

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