NEW YORK--(BUSINESS WIRE)--Fitch Ratings published today a special report on Uruguay following Fitch's revision on April 24 of the sovereign's Outlook to Positive from Stable. Fitch also affirmed Uruguay's long-term Issuer Default Rating at 'BB+' at that time.
The Outlook revision reflects Uruguay's continued reduction in external and fiscal vulnerabilities underpinned by its strengthening international liquidity position and improved currency composition of government debt. Uruguay's sustained growth momentum and ongoing diversification of the economy buttressed by robust foreign direct investment flows also support this rating action. Growth continues to outperform peers and higher rated sovereigns, reaching a five-year average of 6.1% in 2011.
In this report Fitch looks at Uruguay's current progress in creditworthiness compared with other 'BB+' sovereigns that successfully made the transition to the investment grade category. Fitch believes Uruguay's relative performance lags in terms of general government debt. However, other positive trends and mitigating factors signal that Uruguay could be upgraded to 'BBB-' over the Outlook horizon of 12 to 18 months.
The full report 'Uruguay: Close to Return to Investment Grade' is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Uruguay: Close to Return to Investment Grade
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676374
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