On July 14, 2008, Standard&Poor's Ratings Services revised its outlook on the Republic of Costa Rica to positive from stable. At the same time, Standard&Poor's affirmed its 'BB/B' foreign currency and 'BB+/B' local currency sovereign credit ratings and 'BBB-' transfer and convertibility assessment on Costa Rica. Standard&Poor's also affirmed its 'BB+' long-term debt ratings on Costa Rica's foreign currency senior unsecured debt. The foreign currency debt ratings are one notch above the sovereign issuer credit rating, reflecting both default and recovery prospects. The revised outlook reflects a steadily declining government debt burden. The ongoing improvement in the sovereign's fiscal and debt profile, combined with more exchange rate flexibility and a more effective monetary policy,
