Declining public investment in infrastructure and stagnant general government revenues will continue constraining Guatemala's GDP growth potential and exerting pressure on its debt service. The poverty level has increased, and political fragmentation remains. As a result, we are revising the outlook on Guatemala to negative from stable to reflect an at least one-in-three possibility of a downgrade over the next 12 to 24 months if debt service and GDP growth deteriorate beyond our current forecast. We are also affirming our 'BB/B' foreign currency ratings and 'BB+/B' local currency ratings on the Republic of Guatemala. On Oct. 27, 2016, S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BB/B' foreign currency and 'BB+/B' local currency sovereign credit
