This report supplements our research update "Republic of Costa Rica 'BB/B' Ratings Affirmed; Outlook Remains Stable," published on Feb. 26, 2015. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The ratings on the Republic of Costa Rica balance the country's persistent budget deficits and rising net general government debt burden with still-favorable growth prospects and an expected improvement in the country's external position thanks to lower current account deficits (CAD) in the next two years. They also reflect Costa Rica's stable--although fragmented--political system and an exchange rate that is gradually becoming
