This report supplements our research update "Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative," published on Feb. 25, 2016. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The ratings on the Republic of Costa Rica reflect its continued fiscal deterioration that has resulted in a growing debt burden and rising interest payments. The combination of persistent spending pressures and lack of tax reform has gradually weakened the country's public finances and raised its vulnerability to external shocks. As the Administration of President Luis Guillermo Solis
