The impact of the global downturn and the COVID-19 pandemic will cause another sharp decline in Nicaragua's economy this year, following two years of contraction. However, we expect that the resulting deterioration in Nicaragua's external liquidity and public finances will be contained. We are affirming our 'B-/B' sovereign credit ratings on Nicaragua. The stable outlook balances our view that the sovereign will be able to cover its external financing needs this year and next year, and that economic growth will moderately recover next year, with our expectation of continued political uncertainty in the lead-up to national elections in November 2021. On April 20, 2020, S&P Global Ratings affirmed its 'B-/B' long- and short-term sovereign credit ratings on Nicaragua. The outlook
