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Costa
Rica's 'BB' Ratings Affirmed on Good Economic
Growth
Standard & Poor's Ratings Services said it has
affirmed Costa Rica's 'BB' long-term foreign
rating, with a stable outlook, citing good
economic growth and rising tax revenue in 2007.
The rating agency said the country's growth
could exceed 6%, helping it reduce the general
government debt to about 36% of its GDP in 2007.
S&P believes the passage of the Tratado de Libre
Comercio (TLC) - free trade agreement with the
United States - later this year will further
strengthen Costa Rica's creditworthiness, as it
will have a positive impact on the country's
long-term growth.
However, its fiscal and monetary inflexibility
coupled with an unchanging exchange-rate
arrangement that sustains external vulnerability
constrain its ratings, S&P added.
S&P also affirmed Costa Rica's 'B' short-term
currency sovereign credit rating and 'BB+'
long-term local rating.
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