Foreign Currency: B/Negative/B Local Currency: B/Negative/B For further details see Ratings List. Heightened domestic conflict and ongoing violence have weakened governability and impaired the predictability and effectiveness of policy implementation in Nicaragua, in our view. We expect the hit to growth this year to have negative repercussions in 2019-2020 amid a prolonged weaker investment climate. We are therefore lowering our long-term foreign and local currency sovereign credit ratings on Nicaragua to 'B' from 'B+'. The negative outlook reflects the risks of escalation of the domestic conflict that could further impair governability, soundness of the banking system, fiscal performance, and access to external financing. On July 23, 2018, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings
