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Credit Rating Cut By S&P

CHILE

Chile had its credit rating cut one notch at S&P Global Ratings.

  • Long-term foreign currency rating lowered to A from A+ with a stable outlook.
  • Persistently higher fiscal deficits amid increased spending to counter the pandemic and meet rising social demands.
  • The country still has the highest credit rating in all of Latin America followed by Peru.

Separately Fitch Ratings affirmed its rating for Chile at A- with a stable outlook.


*The Chilean Peso has been selling off since the start of the week amid a firmer dollar, EMFX weakness, faltering copper prices and most recently the lack of Hacienda dollar supply. The news has the potential to further weigh on CLP as we approach the vote for members of the constituent assembly that will draft a new constitution on April 11th.

  • Today, Chile's Treasury plans to sell CPI-linked bonds.

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