Guatemala Edges Closer to Investment-Grade Rating

By Mayora IP

Guatemala is moving closer than ever to achieving investment-grade credit status, a milestone that would enhance its appeal to global investors, reduce borrowing costs, and support long-term economic development.

According to the Minister of Finance, Jonathan Menkos, Guatemala’s strong macroeconomic performance—including a 3.5% growth rate—is laying the foundation for this advancement. 

What Does “Investment Grade” Mean?

Investment-grade status signals to investors that a country’s debt is relatively low-risk. As Minister Menkos explained, achieving this grade would:

• Expand the universe of potential investors

• Lower financing costs for both the government and private sector

• Open up broader economic opportunities for the country, translating into tangible benefits for citizens

How Guatemala Is Getting There

Guatemala is pushing ahead through a coordinated strategy under the Inter-Institutional Table for Country Credit Rating Analysis (MINAPA). Key elements include: 

1. A “road map” to reach investment grade

2. In-depth reviews of past credit ratings and international comparisons

3. Ongoing engagement with rating agencies to address their concerns

4. Direct dialogue with global investors

Menkos emphasized that the effort requires broad collaboration across economic and social sectors, reinforcing that this isn’t just a financial goal but a national development effort. 

Recent Upgrades Boost Confidence

Guatemala has already seen important upgrades in its credit ratings. In 2025:

• Fitch Ratings raised its sovereign credit rating from BB to BB+, citing Guatemala’s strong economic growth, low debt, and prudent policies. 

• S&P Global Ratings similarly upgraded Guatemala’s rating, considering the country's fiscal discipline, stable inflation, and institutional reforms.

Challenges and Next Steps

Despite the optimism, there are still hurdles to clear:

• Perception risk: Analysts note that beyond economic metrics, international perception of Guatemala’s long-term stability and governance will be critical. 

• Reform commitment: Continued institutional reforms—especially in infrastructure, governance, and anti-corruption—are needed to convince credit agencies of the country’s sustainability trajectory. 

• Fiscal management: While Guatemala’s debt remains low (under one-third of GDP), maintaining responsible fiscal policies will be essential as investment grows.