He Ministry of Economy and Finance (MEF) reported that the rating agency Moody’s Investors Service (Moody’s) improved the perspective of the public debt of the Uruguay from “stable” to “positive“. This improvement in the rating occurs after 7 years, when at that time it had gone from “negative” to “stable”.
Last month, the rating agency Standard & Poor’s (S&P), one of the most important internationally, had raised Uruguay’s sovereign debt rating from BBB to BBB+“with stable outlook”, as reported in a statement where he also highlighted his “solid fiscal policy”. Since the announcement, other ratings agencies, such as Moody’s, were expected to improve their view of him as well.
For Moody’s, Uruguay’s note was confirmed in “Baa2“, one notch above the investment grade threshold, and an “economic resilience” of “Baa1”. According to the report, the decision was based on prospects for strong economic growth.
The Uruguayan economist aldo motto He assured on his Twitter account that the new note from the rating agency “could be signaling a future rating upgradefrom Baa2″.
The Economist jose licandro assured that this is “the first step for the country to achieve improve Moody’s rating. Usually in a six-month window the rating is issued. The fulfillment of the fiscal rule and the pension reform continue to bear fruit.”
At the same time, Moody’s highlighted successful implementations of fiscal policies and the State’s commitment to the implementation of the fiscal rule, which would underpin a reduction in the public debt burden. The strength of the institutions and governance, which provided an effective political response to crises and maintained political and social stability, were aspects that did not go unnoticed by the rating agency, according to the MEF.
“Following the continued commitment to the fiscal rule, Moody’s expects government debt to decline and stabilize at around 55% of GDP over the next 2-3 years from 61% in 2021,” the firm said in its document. .
In addition to Moody’s and S&P updates, in December 2021 Fitch Ratings upgraded the outlook for Uruguayan debt to stable (BBB-), and in October 2022 the Japanese agency R&I uploaded the note to BBB+with perspective “stable“. In November last year, DBRS Morningstar uploaded the note to BBBalso with a stable outlook.
On this, the economist ignacio umpierrezhe assured on his Twitter account that 4 out of 5 rating agencies have evaluated Uruguay positively in recent months, and that this “imposes the need to see it as a means and not as an end in itself”, and “demanding standards that will be higher and it is necessary to consolidate what has been done“.
Source: Ambito
