This report supplements our research update "Republic Of Costa Rica Sovereign Credit Ratings Affirmed At 'BB/B'; Outlook Remains Stable," published on Feb. 28, 2014. 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 limited monetary, fiscal, and exchange-rate flexibility with good prospects for long-term GDP growth, stable political system, and relatively high social development. Rigid spending commitments have contributed to fiscal erosion in recent years, reflected in larger budget deficits and a rising government debt burden. We estimate the general government's
