Brazil & Southern Cone - March 2024

URUGUAY| Moody’s upgrades credit rating, praises fiscal policy. Ratings agency Moody’s upgraded Uruguay’s long-term issuer and senior unsecured bonds ratings to Baa1 from Baa2 on 15 March. The agency also revised its outlook for the country from ‘stable’ to ‘positive’. “The key drivers of the upgrade include strong institutions that support the implementation of structural reforms and continued compliance with fiscal and monetary policy frameworks, which in turn point to higher sustained growth rates than in the past, supported by strong investment,” Moody’s said in a statement. The agency expects Uruguay’s GDP to grow 3.5% this year, echoing government forecasts, after the economy is expected to have expanded just 0.5% in 2023. Risks include Uruguay’s vulnerability to weather-related shocks and a return to sustained low-growth rates if investment remains muted, but these are balanced out by “sound fiscal policy implementation”, Moody’s said.  

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