Fitch reaffirms Guatemala ratings on stability basis

Fitch Ratings said it reaffirmed Guatemala's BB+ ratings, are supported by the country's sustained macroeconomic stability, solid debt repayment record and its lower public and external debt burdens relative to those of peers.

However, creditworthiness is  constrained by structural factors such as weak social development and governance indicators, high crime and inequality and low savings and investment rates that  constrain long term potential growth.

Fiscal rigidity and a low revenue base  limit the sovereign's ability to address the structural shortcomings, Fitch added.

Source: Fitch Ratings