JPMorgan downgraded its stance on Costa Rica’s USD-denominated bonds from market-weight to underweight, citing less attractive valuations and the impact of rising oil prices. The strategists, noting a more than 300 bps narrowing in Costa Rica’s spreads since early 2022, contrasted with a modest compression in a broader index of emerging-market credit, suggest the positive narrative may now be fully accounted for in current price levels. Analysts highlighted Costa Rica’s status as a net oil importer and the ensuing challenges posed by the commodity’s market outlook.