The Canadian agency DBRS Morningstar raised, on Tuesday the 22nd, the Uruguayan sovereign debt note in foreign currency from BBB (low) to BBB, one notch above the investment grade minimum. The director of Economic Policy of the Ministry of Economy and Finance (MEF), Marcela Bensión, indicated that an improvement in the risk rating generates a greater attraction for foreign and local investment.
Since March 2020, Uruguay obtained the following improvements in credit evaluation: in December 2021 Fitch improved its outlook; in October 2022, R&I upgraded the rating; and in November of this year, DBRS Morningstar did the same.
This fact implies a show of confidence towards Uruguay’s economic policy, said Bensión, in dialogue with Presidential Communication.
He explained that this recognition benefits the entire society, since a better risk rating allows the payment of a lower interest rate. This frees up resources that taxpayers transfer with the payment of their taxes to the Government and can then be used, for the most part, in public policies, especially social ones, he specified.
In addition, the improvement in the risk rating generates a greater attraction for foreign and local investment, since those interested have more certainty to invest in the productive sectors, which leads to the generation of more jobs in Uruguay. This last point is the main focus of this government’s economic policy, he pointed out.
In addition, the director recalled that the rating issued this Tuesday by DBRS Morningstar is the third increase in credit quality achieved by Uruguay in the last year. In October, the Japanese rating agency R & I had raised the note to BBB +, the highest level of credit note reached by the Uruguayan public debt in its history, she recalled.
