S&P Gives IG To Uruguay External Issues

S&P raised Uruguay’s foreign and local currency ratings Monday to BB+ from BB, but also moved its foreign currency issue rating to BBB minus from BB+, meaning that external debt issues will now carry an investment-grade rating. The investment-grade reflects high expected recovery rates in the event of default. The agency cites the country’s ability to maintain similar economic policies during different administrations, including efforts to reduce the government’s exposure to foreign currency debt to avoid external shocks. “The upgrade on Uruguay incorporates its growing track record on the implementation of prudent and consistent economic policies,” the agency says.