Rating Report 10/2020
To accommodate a higher frequency of rating reviews during the coronavirus pandemic, Fitch is publishing scaled-down Sovereign Rating Reports that focus on data and forecasts encompassed in reviews. For the rating rationale, refer to the Rating Action Commentary published on October 8th, 2020.
Rating Action Commentary 10/2020
Fitch Ratings affirmed Uruguay's Long-Term Foreign-Currency Issuer Default Rating at BBB- with a Negative Outlook.The Negative Outlook reflects deterioration in growth and public finances that has been compounded by the coronavirus shock, and risks to government plans to arrest these trends.
Rating Report 03/2020
Sluggish growth and structural fiscal deterioration are driving a rise in public debt at already high levels. The new centre-right government of Luis Lacalle Pou has expressed a clearer and more credible commitment to reverse these trends, but faces a weaker-than-expected starting point, difficult trade-offs, and implementation challenges.
Rating Report 07/2019
Growth underperformance and fiscal deterioration have persisted, lifting the government debt burden and constraining policy space to confront shocks. The scope, nature and timing of potential measures to address these negative fiscal and macroeconomic trends remain uncertain, but could become clearer after the October 2019 elections.
Rating Report 10/2018
Uruguay's ratings are supported by high social development and strong institutions, healthy external finances, and long-dated public debt and liquidity buffers mitigating fiscal financing risks. Persistent fiscal deficits and a high, rising debt burden are eroding policy space to confront shocks, against a more challenging economic backdrop.
Rating Report 04/2018
Uruguay's ratings are supported by strong structural features in terms of social and institutional development, a healthy external balance sheet, and the sovereign's favourable debt maturity profile and financing buffers. These factors are balanced by a weak track record of compliance with inflation and fiscal targets.
Rating Report 04/2017
Ratings are supported by strong structural features in terms of social and institutional development, a strong external balance sheet, and fiscal financing buffers. These factors are balanced by a weak record of compliance with inflation and fiscal targets, weighing on policy credibility, a high and dollarised public debt burden, and budget rigidity.
Rating Report 10/2016
Uruguay's ratings are supported by strong structural features in terms of social and institutional development, solid external buffers, and low fiscal financing risks. These factors are balanced by high inflation, high public debt, and a rigid spending profile lifting fiscal deficits above targets in recent years.
Rating Report 03/2016
Uruguay's creditworthiness is supported by strong structural features in terms of social and institutional development, established external buffers and low fiscal financing risks.
Rating Report 09/2015
Uruguay's creditworthiness is supported by its strong institutional quality, social stability underpinned by high income and human development, and buffers that have enabled solid growth performance despite external challenges.
Rating Report 03/2015
Uruguay's ratings are underpinned by strong structural factors including high per capita GDP and social development indicators, as well as strong institutional quality. Strengthened external buffers, an improved debt profile and higher growth in relation to peers have also supported creditworthiness.
Rating Report 03/2013
Fitch Ratings upgraded Uruguay's Foreign- and Local-Currency IDRs to BBB- and BBB, respectively, in March 2013. Economic resilience in difficult external conditions, together with a stronger external balance sheet and improved debt profile support the upgrade.
Rating Report 04/2012
Fitch Ratings affirmed Uruguay's Foreign and Local-Currency IDRs at BB+ and BBB- respectively with a Positive Outlook on 23 April 2012. This reflects reduced external and fiscal vulnerabilities underpinned by stronger international liquidity and improved currency composition of government debt.
Special Report - Uruguay Close to Return to Investment Grade 04/2012
In this report Fitch Ratings looks at Uruguay's current progress in creditworthiness compared with other BB+ sovereigns that successfully made the transition to the investment grade (IG) category.