Moody’s upgraded Uruguay’s credit rating from Baa2 to Baa1 on Friday, the 15th, reflecting the country’s commitment to structural reforms and strict fiscal and monetary policies.
Such dedication suggests a future of higher, more stable growth rates, supported by strong investments.
This upgrade also changes Uruguay’s rating outlook from stable to positive. Uruguay’s debt ceilings in local and foreign currency have risen to Aa2 and Aa3.
Recent reforms have strengthened Uruguay’s fiscal and monetary frameworks. These changes promise to boost growth, support fiscal tightening, and keep debt levels steady.
Uruguay’s positive rating is due to its large fiscal and foreign reserves and skilled asset and liability management.
Still, it balances a moderate public debt level, government spending rigidity, and a high but decreasing foreign currency debt.
From 2021 to 2023, Uruguay reduced its public debt from 61% of GDP to 57%, thanks to spending control and solid growth.
Moody’s expects this debt-to-GDP ratio to stay in line with similar nations in the near to mid-term.
Inflation is declining, fitting within the Central Bank’s 3% to 6% goal. Thanks to stable inflation expectations, Moody believes this trend will continue.
This rating upgrade matters because it highlights Uruguay’s effective policy actions and their impact on economic stability and growth prospects.