Uruguayan News

Canadian Rating Marked Uruguay Up

The risk rating agency DBRS announced that Canada raised the note of the Uruguayan long-term debt to "BB" from "BB-", both foreign and local currency, according to a statement published Thursday on the website of the Ministry of Economy and Finance. The prospect of this letter is "stable."
The agency based this decision on improving the credit rating of Uruguay's sovereign debt in "the sustained growth that has been showing the Uruguayan economy in recent years, strong financial system, fiscal discipline, sound management of government debt high level of foreign direct investment, in a context of political stability and prudent macroeconomic management. "
"We think Uruguay deserves this improvement due to the strong economic performance during the financial crisis. In addition, political commitment to make a prudent macroeconomic management and a high level of Foreign Direct Investment (FDI) is transforming the export sector and raising the prospect of long-term economic growth, "said Michael Heydt, senior financial analyst sovereign bond.
Heydt stated that the Uruguayan economy "grew 8.5% in 2008 and 2.9% in 2009, is one of the best performance in the region." DBRS said that "greater flexibility to change, high international reserves and a well-regulated financial system helped to weather the international financial crisis."
The announcement was released a day after Minister of Economy and Finance, Fernando Lorenzo, said during the call to hall by Senator Luis Alberto Lacalle that the ratings tend to be unfair to Uruguay because although the country has improved their indicators remain below grade indebted countries Uruguay.