The rating agency Fitch Ratings raised Uruguayan debt rating to BBB-, which places the country in the investment grade category, which Moody’s and Standard & Poor’s had assigned it before.
Last April, Standard & Poor’s raised the Uruguayan debt rating from BB + to BBB-, and in July, Moody’s raised the rating to Baa3.
Now Fitch Ratings is raising debt rating to BBB-, which allows the country to borrow at a lower interest rate.
In a statement, Fitch said that the rating reflects «Uruguay’s demonstrated economic resilience in recent years, most recently reflected by the country’s healthy growth of 3.6% in 2012 despite the economic difficulties confronting its main trading partners.»
The statement stresses that the average GDP growth of 5.6% in the last five years is well above the median of the peer group rated ‘BBB’ and its medium-term outlook remains favorable. «Fitch forecasts a 4% average GDP growth for Uruguay in 2013 and 2014,» reads the statement.
It also adds that «Uruguay’s social and political stability, strong institutions and relatively high per capita income are characteristics that are fully in line with investment- grade countries. Policy continuity is likely after the 2014 presidential elections».
