Sovereign Trends in Central America

As a result of political polarization, fiscal constraints, and rising tensions with the U.S. over immigration policy, Central America faces political instability; currently, three out of five countries in the region have negative outlooks. In the latest edition of Fixed Interests, Shelly Shetty, co-Head of Latin American Sovereigns, and Carlos Morales, Director of Sovereign Ratings, discuss the latest trends in Central America Sovereigns as well as the more common themes behind some of the recent negative rating actions.