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Standard & Poor's Ratings Services revises outlook on Guatemala to negative from stable. Fiscal deficit is big concern

Wednesday, August 3, 2011

\ Standard & Poor's Ratings Services revised its outlook on Guatemala to negative from stable, citing the government's fiscal deficits, increasing debt and low tax revenue.\ \ The credit rater affirmed Guatemala's junk-level foreign currency sovereign credit rating of BB and local currency rating of B+.\ \ 'The negative outlook reflects the growing likelihood that fiscal deficits will continue to exceed 3 percent of [gross domestic product] and that debt will increase over the next several years absent any measures to strengthen revenue and boost growth prospects,' said S&P credit analyst Lisa Schineller.\ \ Original source: Dow Jones\ \ \ \