We expect that continued implementation of recent fiscal and energy-sector reforms will contain Honduras' general government fiscal deficit to around 4% of GDP over the next two years, helping to keep net general government debt below 40% of GDP over the same period. We are raising our long-term foreign and local currency sovereign credit ratings on Honduras to 'B+' from 'B'. We are also affirming our 'B' short-term foreign and local currency sovereign credit ratings. The stable outlook reflects our expectation that the government will contain fiscal deficits in line with its commitments under an IMF standby program, continue restructuring the energy sector, undertake liability management operations to improve the profile of its domestic debt, and sustain investor confidence over
