Fitch Ratings could downgrade Nicaragua’s sovereign risk rating, currently at B+ with a stable outlook, due the political crisis and violence, in which the country has been immersed since last 18 April.
“If the political crisis and violence continues or deteriorates further, it could provoke a negative credit action. This could imply a negative outlook or a reduction in the rating,” a Fitch representative told EL NUEVO DIARIO.
The international firm considers that the losses in the sectors of commerce, transport, tourism and construction, as well as other productive activities, would influence a lower performance, lower than the projected economic growth of the Central Bank of Nicaragua (BCN) of between 3% and 3.5% for 2018.
According to Fitch, the crisis will affect Nicaragua’s credit.
Rolando Martínez, the Fitch Ratings specialist in financial institutions in Central America, believes that if Nicaragua takes longer to return to normal, there would be a slowdown in credit.
According to Martinez, for several years now, Nicaraguan banking has stood out for its good levels of capitalization, liquidity and profitability, giving it a good profile to face current events.