On March 6, 2009, Standard&Poor's Ratings Services affirmed its 'BB/B' foreign-currency and 'BB+/B' local-currency sovereign credit ratings on the Republic of Costa Rica. At the same time, Standard&Poor's affirmed its 'BBB-' transfer and convertibility assessment on Costa Rica. The outlook remains stable. In addition, Standard&Poor's affirmed its 'BB+' ratings on Costa Rica's foreign-currency senior unsecured debt. These debt ratings are one notch above the sovereign credit rating, reflecting both default and recovery prospects. Costa Rica has entered the global economic downturn from a position of improving monetary flexibility and a reduction in its debt burden. The central bank has gradually shifted from a crawling peg to an exchange rate band that provides modestly more
