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Moody's Revises Costa Rica
Outlook to Stable
(Reuters) - Moody's Investors
Service on Tuesday revised Costa
Rica's debt ratings to stable
from negative mentioning an
improvement in the country's
debt dynamics.
The ratings agency said in a
statement its decision was based
on the country's "declining debt
ratios and diminishing concerns
about financial dollarization."
Moody's rates Costa Rica's
foreign - and local - currency
government bonds at "Ba1."
Bonds which are rated Ba are
judged to have speculative
elements; their future cannot be
considered as well-assured.
Often the protection of interest
and principal payments may be
very moderate, and thereby not
well safeguarded during both
good and bad times over the
future. Uncertainty of position
characterizes bonds in this
class.
A Moody rating may have digits
following the letters, for
example "A2" or "Aa3". According
to Fidelity, the digits in the
Moody ratings are in fact
sub-levels within each grade,
with "1" being the highest and
"3" the lowest. So here are the
ratings from high to low: Aaa,
Aa1, Aa2, Aa3, A1, A2, A3, Baa1,
Baa2, Baa3, and so on.
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