Moody’s Investors upgrades Uruguay rating to Baa3


Moody’s Investor’s has upgraded Uruguay’s government bond rating from Baa2 to Baa3.

The agency described the key drivers leading to the decision as being:

1. The consolidation of Uruguay’s government sovereign credit profile, which incorporates (i) low rollover risks given average debt maturity of more than 10 years; (ii) moderate gross financing needs in absolute and relative terms over the next three to five years; and (iii) large financial buffers that provide cover against an adverse turn of events in global financial markets.

2. Uruguay’s orderly transition towards lower, albeit more stable, growth levels, which Moody’s anticipates will be supported by a steady increase in the investment ratio and productivity gains.

3. A decline in Uruguay’s exposure to regional shocks and an increase in its commodity diversification that have enhanced the country’s credit resilience materially, thereby reducing the extent to which adverse events can affect the country’s sovereign credit outlook.

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