Costa Rica`s BB ratings affirmed on good economic growth

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* Costa Rica`s BB ratings affirmed on good economic growth - S&P

Standard & Poor's Ratings Services said it has affirmed the Republic of Costa Rica's 'BB' long-term foreign rating, with a stable outlook, citing good economic growth and rising tax revenue in 2007. The rating agency said the country's growth could exceed 6 pct, helping it reduce the general government debt to about 36 pct of its GDP in 2007. S&P believes the passage of the DR-CAFTA trade agreement later this year will further strengthen Costa Rica's creditworthiness, as it will have a positive impact on the country's long-term growth. However, its fiscal and monetary inflexibility coupled with an unchanging exchange-rate arrangement that sustains external vulnerability constrain its ratings, S&P added. S&P also affirmed Costa Rica's 'B' short-term currency sovereign credit rating and 'BB+' long-term local rating.

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