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Fitch affirms Guatemala at BB

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Fitch affirms Guatemala at BB

FitchRatings on April 29 affirmed Guatemala's long-term foreign and local currencyissuer default ratings at BB, with a stable outlook.

The ratingsagency also affirmed Guatemala's country ceiling at BB+ and short-term foreigncurrency issuer default rating at B.

Inaffirming the ratings, Fitch noted that Guatemala maintained GDP growth of 4.1%in 2015, as real wage gains, strong growth in worker remittances and low oilprices supported private consumption. The country's growth potential, however,sits between 3.5% and 4.0% and is not enough to significantly improveper-capita income and reduce poverty, the rating agency noted.

The countryis also mired with corruption scandals, which have had far-reachingrepercussion, Fitch noted. The country's political gridlock, which is impactingflexibility in financing, and social unrest and governability challenges serveas downside risks for the ratings, Fitch said.