Honduras' monetary and exchange rate rigidities have weakened external liquidity and dampened prospects for private-sector investment. We expect the government to maintain moderate fiscal deficits and debt levels, despite risks stemming from losses in the public-sector electricity company. We revised our rating outlook on Honduras to negative from stable and affirmed our 'BB-/B' sovereign credit ratings. The negative outlook incorporates the risks that the limited ability to secure external financing could further weaken international reserves and the country's external liquidity, as well as lower its economic growth prospects. On Sept. 20, 2024, S&P Global Ratings revised the outlook on its long-term ratings on Honduras to negative from stable. At the same time, we affirmed our 'BB-/B' long- and short-term sovereign
