El Niño, a weather event that can have major impacts on economies across Latin America, has been forecast to rear its sometimes-unwelcome head this year, according to BN Americas.

Previous instances of El Niño have crippled crop and fish yields across the region, but a Moody's report said this time around, Latin America is much better prepared to deal with the system.

Many of the countries that are impacted by El Niño -- including Brazil, Colombia, Panama, Peru, Chile, Paraguay and Uruguay -- have decreased deficits and financing needs, Moody's Senior Vice President Gersan Zurita said, BN Americas reported.

"Access to funds to combat heavy rains, as well as bilateral and multilateral loans, will help these national overcome damage to infrastructure and the costs of other emergencies that may arise from El Niño," Zurita said.

Banks also are in a much stronger position to deal with the negative implications of the weather system, Moody's said in the report, adding that those banks will be better able to manage risk and declines in asset quality.

Business Insider reported that the United Nations said El Niño has an 80 percent chance of forming in October or November and a 60 percent chance of forming in July or August.

El Niño typically happens every two to seven years when the trade winds that blow across the surface of the tropical Pacific Ocean weaken. This can lead to extremes in weather condition -- drought and flood -- depending on location, according to the Business Insider report.

The weather system last happened between June 2009 and May 2010. It causes much heavier than normal rainfall in Latin America.

Peru likely will be the hardest-hit country in Latin America, as rising sea temperatures will impact its production of fish meal and fish oil, BN Americas reported. Other parts of the region could see decreased wheat, corn and rice harvests.