R&I affirms Uruguay's investment grade rating and maintains positive outlook

The Japanese rating agency Rating and Investment (R&I) ratified Uruguay's foreign currency issuer rating at BBB, maintaining a positive outlook.

In support of its decision, the rating agency said in a statement on Monday that Uruguay has a high level of income and stands out in Latin America for its institutional and political stability.

The agency affirmed Uruguay's rating even in the context of the pandemic and reported that it expects the "economic outlook to recover in the medium term, supported mainly by a major foreign capital investment project".

Moreover, the agency reported that "the current administration's multifaceted structural reforms are increasingly likely to help boost the economy" and highlighted the government's efforts to lower the fiscal deficit.

Among the qualities that distinguish Uruguay, the R&I report noted that "more than 90% of the country's electricity is generated from renewable sources, and the government sees strategic value in promoting environmentally friendly policies, including the redesign of fiscal policies aimed at reducing carbon emissions and boosting green hydrogen production".

Together with Chile and Peru, Uruguay is currently among the few South American countries with investment grade status, a condition that adds to its competitive advantages in attracting quality foreign direct investment.

Click here to access the full Rating and Investment statement