Uruguay achieved its highest credit rating in history today when Moody’s Investors Services upgraded its rating for Uruguay government bonds to Baa2 from Baa3 with a stable outlook.
According to the official press release, Moody’s based the ratings upgrade on three main drivers: the strengthening of Uruguay’s credit profile with adequate buffers and a lower debt:GDP ratio, declining exposure to regional shocks and anticipation of “robust investment in the coming years.”
The Baa2 announcement comes two years after Moody’s upgraded Uruguay’s government bond rating to Baa3 in July 2012 with a similar positive outlook based on Uruguay’s economic fundamentals, stability and export diversification.
The good news coincides with an equally positive report confirming a rising tide of foreign investment in Uruguay. The Economic Commission for Latin America and the Caribbean (ECLAC) says the region received US$184 billion in foreign direct investment last year, a five percent increase over 2012.
According to ECLAC, “the level of foreign direct investment Uruguay received is very high for the region and was equivalent to 5% of the country’s GDP.” Direct foreign investment in Uruguay increased for the fourth consecutive year and reached an all-time high of US$2.796 billion. (Full Story in Spanish)
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