Fitch to Rate Costa Rica's Upcoming Global Bond Issuance at 'BB+'

NEW YORK--()--Fitch Ratings has assigned Costa Rica's upcoming benchmark global bond maturing in 2022 an expected rating of 'BB+'. The expected rating is in line with Costa Rica's Foreign Currency Issuer Default Rating, which has a Stable Outlook. The receipts from this issuance will be used for the refinancing of external and domestic debt obligations in 2012 and 2013.

Costa Rica's 'BB+' ratings are supported by its institutional strength and favorable social indicators. A history of political and macroeconomic stability combined with a skilled labor force continues to attract foreign direct investment and foster the development of highly competitive export-oriented industries.

Costa Rica's ratings are constrained by the country's narrow and pro-cyclical revenue base, relatively high fiscal deficits and expenditure rigidities which limit its fiscal flexibility. However, Costa Rica's low government indebtedness relative to peers (30.8% in 2011 compared with 40.3% for the 'BB' median) gives it some space to deal with fiscal pressures.

Additional information is available at 'www.fitchratings.com'. The ratings above were unsolicited and have been provided by Fitch as a service to investors.

Applicable Criteria and Related Research:

--'Sovereign Rating Methodology' (Aug. 13, 2012).

Applicable Criteria and Related Research:

Sovereign Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685737

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Contacts

Fitch Ratings
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Lucila Broide, +212-908-0898
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Cesar Arias, +1-212-908-0358
Associate Director
or
Elizabeth Fogerty, +1-212-908-0526
New York, Media Relations
elizabeth.fogerty@fitchratings.com