We expect the Xiomara Castro administration in Honduras to pragmatically implement economic policies to address social priorities. Amid economic slowdown, inflationary pressure, and adverse and complex global conditions, we expect fiscal deterioration in the near term. We revised our outlook to negative from stable and affirmed our 'BB-/B' sovereign credit ratings on Honduras. The negative outlook reflects the risk of fiscal slippage that could weaken the sovereign's public finances . On July 21, 2022, S&P Global Ratings revised its outlook on Honduras to negative from stable. We also affirmed our 'BB-/B' long- and short-term sovereign credit ratings. Our transfer and convertibility (T&C) assessment remains 'BB'. The negative outlook reflects our view that there is at least a one-in-three chance that
