Costa Rica | Sovereign Analysis

Recommendation Sensitivity and Risks

Changes in fundamental factors that may warrant a review of our recommendations on these issues include clear signs of a reversal in the upward trajectory in reserve accumulation and coverage, particularly when contextualized with US monetary policy (i.e., is the US tightening and the impact it could/is having on the external accounts) and overall external balance stability. Failing to meet stipulated fiscal landmarks which will allow the country access to further funding from external sources (i.e external bond market or through multilateral organizations such as IMF). Any contrary signs that suggest any of the above are becoming less of a concern would further cement/improve our outlook, all else being equal.

Costa Rica | Sovereign Analysis

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