Fitch Central America the economic ratings company regional division has come out with the newest ratings for Costa Rica. In the highly politized environment of bond ratings for entire countries that are small like Costa Rica, what the ratings company says could very well spell fortune or misfortune for the country. But the independent company reaffirmed its rating for Costa Rica’s government backed bank Banco de Costa Rica as AA+ for Long Term and F1+ for Short Term.

Apparantly, the low risk portfolio of the banks outstanding credit is its greatest asset and offer the needed strength to weather the current financial crisis.   Last years delinquencies on loans were .07% of total outstanding debt. This year it will account for no more than .09% which is great in light of the current economic conditions.  Fitch did note in the ratings release that the explicit backing of the Costa Rican government played heavily on its decision.

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