Moody’s, an international financial risk qualifier, raised the qualification of Nicaraguan debt from “B3” to “B2”. This perspective remained stable throughout the study.
Among the reasons why Moody’s considered raising the previously established credit rating are the following: strong financial growth, close relationship with the International Monetary Fund (IMF), low tax deficits, stable debt ratios, among others.
The agency expressed that “given the gradual but continuous positive changes in the Nicaraguan economy”; the country’s debt is more manageable. Furthermore, Moody’s expressed that the country’s current account deficit has remained in an average of ten percent (10%) of the Gross Domestic Product (GDP) during the last five years.
Moody’s rating action also modified the qualification of foreign currency bonus from “B2” to “B1”, the qualification of foreign currency deposit from “Caa1” to “B3”, and the qualification of local currency deposit from “B2” to “Ba3”. Meanwhile, both the foreign currency short-term deposit and qualification of bonus and the local currency one remained as “Non-Prime (NP)”, which is considered as the zone of material risk with extreme speculations.