Uruguay’s foreign and local currency issuer default ratings outlook was revised to positive from stable by Fitch Ratings, citing a drop in foreign currency debt as a percentage of total borrowing and record reserves.
“The outlook revision reflects Uruguay’s continued reduction in external and fiscal vulnerabilities underpinned by its strengthening international liquidity position and improved currency composition of government debt,” Fitch said in a report today from New York.
Government debt issued in foreign currency fell to 51 percent of total debt last year from 66 percent in 2010, Fitch said. The government has also improved its foreign exchange exposure by accumulating reserves, which climbed 30 percent last year to a historical high of $10.3 billion, the ratings company said.
Fitch affirmed Uruguay’s foreign currency issuer rating at BB+, its highest non-investment grade.