The countdown to Uruguay’s presidential election at the end of this month is expected to remain uneventful for financial markets and foreign investors.

Unlike what transpired last month in Brazil where daily polls and projections had local stocks and the Bovespa soaring one day and plunging the next, the economic outlook for Uruguay is stable regardless of which candidate wins the November 30 runoff election.

In an interview with El Observador, S&P’s Associate Director Delfina Cavanagh said the outcome of Uruguay’s first round election in October had no impact on the country’s rating. “In Uruguay, it’s not a factor that raises concern in terms of (country) rating. We assigned an investment grade rating in May of this year, and the outlook is stable. Today we would say the same thing…the rating is not subject to changes in the government,” said Cavanagh.

The political stability of Uruguay has increased over the past decade which has been an important factor for foreign investors. A recent study by the World Bank and the Brookings Institution showed that Uruguay’s government and institutional quality rose from 69.2 points in 2003 to 80.3 points in 2013, while political stability rose 16% over the same period.

“In Uruguay there is a stable political system as well as economic stability. Regardless of whether Tabare Vasquez or Lacalle Pou wins the runoff election, we don’t believe there will be major changes in Uruguay’s economic and political policies,” says Cavanagh adding that the two most important election year issues for the electorate are social issues: education and security.

“This is viewed as a positive that, even though there will be a change in government, there is consensus regarding macroeconomic policies,” she concluded. (Full Story in Spanish)

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