Credit ratings are assigned to sovereigns and businesses by international credit rating agencies. A credit rating measures the relative risk that an entity (Government or company) will fail to meet its financial commitments, such as interest payments and repayment of principal, on a timely basis.
These relative risks are mapped into discrete rating notches that are expressed in terms of alphabetic identifiers. For example, from the most creditworthy to the least, Fitch and S&P use AAA, AA, A, BBB for investment grade long-term credit risk, and BB, B, CCC, CC, C, and D for non-investment grade long-term credit risk. The long-term foreign-currency rating is the most commonly used by investors and analysts. In the following table users can find the updated credit rating for long-term Uruguayan bonds.
Excel Table: Credit Rating Track Record
|Agency||Long Term Foreign Currency||Long Term Local Currency||Outlook||Last Rating Update|
|Fitch Ratings||BBB-||BBB-||Negative||October 2020|
|DBRS||BBB (low)||BBB (low)||Stable||January 2020|
Source: Credit Rating Agencies
Rating Agencies Credit Analysis and Press Releases