Japanese Rating Agency upgrades Uruguay to Investment Grade Status

The Japanese Rating and Investment Information, Inc. has upgraded Uruguay´s long-term foreign currency credit rating to "BBB-", with stable outlook. Thus, Uruguay has been acknowledged with Investment Grade Status by the five credit agencies that evaluates the country: R&I’s, S&P, Moody's, Fitch and DBRS.

Uruguay has worked consistently to increase its resilience to changes in the external environment by diversifying trades and strengthening the financial system. This work was led by the Debt Management Unit (DMU), which was created at the Ministry of Economy and Finance in 2005, seeking to develop an independent administration of the Government's financial obligations and cashflows.

The main objective of the DMU is to assure the Government's financing at the lowest possible cost given risk exposure parameters, based on a solid operational capacity, updated research methods and a proactive approach to the sources of funding.

R&I's press release explained “Uruguay's balance of payments structure is stable on the whole. As of June 2014, foreign reserves have been built up to US$18.6 billion or 31% of GDP, which is equivalent to a 13-month worth of the total of goods and services imports in 2013. R&I believes that the risk that Uruguay's economy will be destabilized in terms of external position is limited”.

The methodology applied to do this rating can be verified at "R&I's Analytical Approach to Sovereigns" available at their website.