Fitch Rates Guatemala's USD700 Million 2026 Global Bonds 'BB'

Fitch Ratings has assigned a 'BB' rating to Guatemala's USD700 million global bond issuance maturing May 3, 2026. The bonds have a coupon rate of 4.5%.

The government will use the proceeds to pay interest and principal on its outstanding debt obligations and the remainder to finance social and investment programs and capital expenditures

KEY RATING DRIVERS

The rating is in line with Guatemala's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'BB'.

RATING SENSITIVITIES

The rating would be sensitive to any changes in Guatemala's Long-Term Foreign Currency IDR. On April 29, 2016, Fitch affirmed Guatemala's Long-Term Foreign Currency IDR at 'BB' with a Stable Outlook.

Date of Relevant Rating Committee: April 28, 2016

Additional information is available on www.fitchratings.com.

Applicable Criteria

Country Ceilings (pub. 20 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869287

Sovereign Rating Criteria (pub. 12 Aug 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754428

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1003666

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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