The rating agency Moody’s ratified the positive perspective of the public debt of Uruguay and did not rule out a new improvement in the credit rating, as admitted by the vice president and senior credit officer of the international entity, Jaime Reusche.
The country rose from “stable” to “positive” last May and at the regional level today it is only surpassed by Chili, which appears first, and Peru. However, reusche admitted that Uruguay began to “step on the heels” of the second country, during his speech at the event Moody’s Inside Latam that developed on Peruvian soil.
When delving into this explanation, the vice president of the rating agency attributed as a problem for Peru the assumption of former president Pedro Castillo and its “negative impact on institutions”, followed by “social risks”, while contrasting the “positive perspective” for Uruguay, which could thus reach second place in a future review.
Reusche recognized “certain fiscal strengths” in the country, along with Colombia and Panama, although he considered that anyway Peru it continues one step above in comparative terms.
The outlook for the Uruguayan public debt
Moody’s The outlook for the country’s public debt had already improved in May from “stable” to “positive” after 7 years, joining other rating agencies such as Standard & Poor’s (S&P), that the sovereign debt note was raised from BBB to BBB+ in April, “with a stable outlook”.
As to Moody’s, the rating was confirmed at “Baa2”, one notch above the investment grade threshold, and an “economic resilience” of “Baa1”. In fact, according to the report, the decision was based on prospects for strong economic growth.
On that occasion, the Ministry of Economy and Finance (MEF) He appreciated that the agency highlighted the successful implementation 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.
according to FEM, Other key aspects were the strength of the institutions, and of governance, which provided an effective political response to the crisis and maintained political and social stability.
Source: Ambito
