Uruguay upgraded its investment rate
The Japanese “Rating and Investment Information Inc.” (R & I) upgrades Uruguay to BBB: “Uruguay’s economy has increased its stability”. The rating agency raised the rating of Uruguayan sovereign debt in foreign currency to BBB from BBB-. The perspective is stable, with slowing inflation and policies such as those to reduce the fiscal deficit are good signals to improve Uruguay's score.
"It is unprecedented that three of the five risk rating agencies place the country in the second step above the investment grade", said Minister of Economy and Finance, Danilo Astori. Based on the losses in deficit and inflation, as well as financial strength, he explains that "it is essential to generate more work and improve living conditions."
The report also highlights the growth and autonomy of the Uruguayan economy, mainly in relation to Argentina and Brazil.
Astori attributed these ratings to the growth achieved by Uruguay in recent years despite the difficulties in the international economic context, in addition to the fight against the fiscal deficit, the reduction of inflation towards the official target range and the surplus reached "for the first time in decades "in the balance of payments of commercial, financial and productive operations carried out abroad.
It's important to emphasize about the financial strength of the country, with average terms of the debt of 14 years of which more than half is in national currency, "which eliminates all possible foreign exchange risk," he said. "The liquid reserves of the Government far exceed all the debt commitments that the country has for next year, that is observed and qualified from the outside and resolutions are taken as you are," he added.
International confidence is essential to attract new investments that generate more sources of work and consequently result in an improvement in the living conditions of the population, the minister described. Astori recalled that Uruguay is considered internationally as a country of full democracy that ranks first in Latin America and has the lowest level of corruption in the region.