Uruguay with stable outlook and credit rating

By Pittaluga Abogados

The country retains its second level investment grade, according to the financial risk rating agency. This is a major factor taken into account by foreign investors who are considering investing in the country. S&P affirmed Uruguay’s sovereign credit standing at BBB and rated its outlook as “stable,” thus indicating a solid foreign position for the economy despite dollarization levels.

According to the report, Uruguay’s rating is supported by the implementation of prudent policies, in addition to the country’s robust external position. It states that investments in key sectors, such as the pulp industry, will keep the Uruguayan economy strong during the next three or four years, while furthering economic growth.

S&P forecasts that Uruguay’s GDP will grow at an average 3.2% in 2018-2021, driven by exports and the expectation of another highly favorable tourist season, domestic consumption and gradually recovering investments. The country’s institutions and the low perception of corruption sustain investor confidence in the country and continue to support economic policies.