Amid the COVID-19 outbreak in Costa Rica and key trading partners, we expect a contraction in Costa Rican GDP and further deterioration of the government's fiscal profile in 2020, with a rise in already high debt and deficits. Access to local market funding, which stabilized in 2019 after coming under pressure in 2018, and access to multilateral funding are critical to forestall deficit-related financing pressures, given instability in global financial markets. We are affirming our 'B+' long-term foreign currency and local currency sovereign credit ratings on Costa Rica. The outlook remains negative, indicating the risk of a downgrade over the coming 12 months if, after the pandemic, the Alvarado Administration and Congress display uneven political commitments to timely adjustment of
