Fitch Upgrades Uruguay’s Ratings, Outlook Revised to Stable

Uruguay had its foreign currency issuer default rating raised to BB+ from BB by Fitch Ratings, which cited improved external and fiscal solvency ratios. The rating outlook was revised to stable from positive.

The local currency issuer default rating was raised to BBB-from BB+ and the country ceiling was upgraded to BBB from BBB-, Fitch said. Uruguay’s foreign currency short-term issuer default rating was affirmed at B.

Uruguay now has a better currency composition and maturity structure of government debt, Fitch said. High gross domestic product, per capita income, social indicators and “solid” institutions underpin Uruguay’s creditworthiness, Fitch said.

“Uruguay’s growth performance and outlook remain quite favorable,” Fitch analysts including Santiago Mosquera said today in the statement. “Fitch believes policy continuity and political stability are solidly anchored by a strong institutional framework.”

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