The combination of growing spending pressures and lack of tax reform has weakened Costa Rica's public finances and raised its vulnerability to external shocks. We are lowering our long-term foreign and local currency sovereign credit ratings on Costa Rica to 'BB-' from 'BB'. The negative outlook reflects the risk of a downgrade if expenditure control measures and future revenue measures fail to gradually stabilize the government's debt burden. On Feb. 25, 2016, Standard&Poor's Ratings Services lowered its long-term foreign and local currency sovereign credit ratings on the Republic of Costa Rica to 'BB-' from 'BB'. The outlook is negative. At the same time, we affirmed our 'B' short-term foreign and local currency sovereign credit ratings. We also lowered
