Moody’s Boosts Chile to Aa3

Gilding Chile’s first World Cup soccer match win in 48 years (1-0 versus Honduras), Moody’s upgraded the sovereign to Aa3 from A1. The agency cites the country’s economic resilience after February’s earthquake, as well as the government’s strong fiscal position and favorable debt profile. International reserves and fiscal savings are almost $40bn, compared with about $12bn total government debt, Moody’s says, adding that the average debt-to-GDP ratio for Aa rated sovereigns was 36% last year, but only 6% for Chile. Similarly, Chile’s debt-to-revenue ratio of 25% compares favorably with the Aa median of 88%. Moody’s also upgraded to Aa3 from A1 the ratings of Banco Santander Chile, Banco de Chile, Banco Estado and Banco Estado’s New York branch.