After consistently running general government (GG) surpluses in 2022-2025, Nicaragua reduced net GG debt to GDP to 25% from 46%. We believe this, combined with the country's strong external buffers, provides the administration room to maneuver amid potential economic, trade, and other unforeseen shocks. Therefore, we raised our long-term sovereign credit ratings on Nicaragua to'BB-'from'B+'. The stable outlook reflects our expectation that the sovereign will maintain conservative macroeconomic policies over the coming year, underpinned by strong external and fiscal buffers. On Oct. 29, 2026, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on the Republic of Nicaragua to'BB-'from'B+'. The outlook is stable. At the same time, we affirmed the
