Costa Rica's long-term growth prospects have been favorable, its political system has been stable, and social development has been relatively high. As a result, we affirmed our 'BB/B' long- and short-term sovereign credit ratings on Costa Rica. The outlook is stable, reflecting our expectation for a smooth transition to a new administration later this year. Failure of the new administration to take timely corrective measures to stabilize fiscal deterioration would result in a continued rising burden of government debt and potentially increased external vulnerability, weakening the credit rating on the sovereign. On Feb. 28, 2014, Standard&Poor's Ratings Services affirmed its 'BB/B' long- and short-term foreign and local currency sovereign credit ratings on Costa Rica. The outlook remains stable.
