Moody's lowers the rating of Costa Rican bonds

Moody's, the international agency reduced the rating of Costa Rican B1 and Ba2 bonds, with a negative spin. The change was justified, the agency said, because of the large fiscal deficit, and the increase in servicing the debt.

The fiscal reform was approved by legislators this week. However, Moody's said that it will take several years in order to reduce the weight of servicing the debt.

The reform points to a reduction in the fiscal deficit of less than 4 percent of GDP by 2023 by means of a combination of increases in income and cuts in spending.