Fitch also upgraded Uruguay’s debt rating

The rating agency raised the rating from BBB- to BBB with a stable outlook.
Publication date: 07/06/2023

Fitch Ratings raised Uruguay’s debt rating to above the minimum value within investor grade. The decision taken by Fitch adds to other upgrades adopted by the five rating agencies that have evaluated Uruguay since the end of 2021.

In December 2021, Fitch upgraded Uruguay’s debt outlook to BBB-, from negative to stable; in October 2022, Japan’s R&I upgraded the rating to BBB+, maintaining a stable outlook; in November 2022, DBRS Morningstar upgraded the rating to BBB, with a stable outlook.

In April 2023, Standard & Poor’s raised the rating to BBB+, with a stable outlook. In May of this year, Moody’s Investors Service upgraded the outlook to positive, maintaining the rating at Baa2 (equivalent to BBB).

The Fitch document indicates that Uruguay improved its credibility, increased its resilience to economic shocks, and reduced the risk of a potential increase in public debt stock.

According to Fitch, the recent approval of the pension reform, which improves the financial sustainability of the pension system, also indicates the government’s commitment to a more prudent fiscal policy consistent with the country’s high standard of governance.

BBB is the highest rating Fitch has ever given Uruguay from the time the agency began rating the country in January 1995. On the other hand, the last rating upgrade by this agency was more than ten years ago in March 2013, when Uruguay regained the BBB- investment grade credit rating.