Honduras Debt ratea a B + from Standard & Poor's

The financial rating agency Standard and Poor’s upgraded from B to B + the debt note of Honduras, due to the political and fiscal reform in the country with a stable outlook.

The “political climate of Honduras is stabilized after the expulsion of former President (Manuel) Zelaya, which allowed the government to implement reforms and focus on long-term problems,” the company said in a statement.
However, “monetary and fiscal rigidities and a weak local capital market are credit constraints,” he added.

“The government restored good relations with foreign donors and reduced domestic political tensions, creating a budget that allowed recent progress, a pension reform and flexibility in the exchange rate,” the statement said.
This situation, coupled with an increase of 3% to 4% forecast for this year, should enable the country to contain the deficit at around 3% of GDP in 2012.
Honduras is the third poorest country in the hemisphere currently facing low growth and a fiscal deficit that is covered in part by foreign aid and domestic debt, which has damaged the country’s finances.