Moodys affirmed Uruguay at Baa2; outlook revised to negative from stable
June 23th, 2016. Moody's affirmed the government of Uruguay's Baa2 issuer and government bond ratings and changed the outlook to negative from stable.
Two key drivers underpin the negative outlook:
1) The announced fiscal consolidation measures that seek a 1% of GDP deficit reduction, primarily through revenue increases, will be challenged by macroeconomic weakness.
2) Downside risks stemming from larger-than-expected regional spillovers and structural expenditure rigidities remain.