On Oct. 8, 2007, Standard&Poor's Ratings Services affirmed its 'BB' foreign and 'BB+' local currency long-term credit ratings on the Republic of Costa Rica. At the same time, Standard&Poor's affirmed its 'B' short-term local and foreign currency ratings on the Republic. The outlook on the long-term ratings is stable. The recent approval of the DR-CAFTA trade agreement by the Costa Rican electorate sends a positive signal to the market, enhancing the country's long-term growth prospects. Better and sustained GDP growth, along with a strengthening of the tax base, would accelerate the gradual, ongoing improvement in the sovereign's fiscal and debt profile, potentially strengthening the sovereign's credit standing. Costa Rica's entry into DR-CAFTA, along with the growing
