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Moody’s Affirms A2 Sovereign Rating, With Stable Outlook

CHILE
  • Moody’s has affirmed Chile’s long-term foreign debt rating at A2, with a stable outlook. It said that the ratings affirmation was underpinned by Chile's high institutions and governance strength and a strong fiscal position. Moody’s also noted that the country’s relatively low debt burden, high debt affordability and fiscal policymaking that is focused on medium-term debt sustainability provide key support to the rating.
  • In terms of the stable outlook, Moody’s says that the risk of a material, long-lasting negative or positive shock to the country's economic and fiscal strength is balanced. They expect government efforts to boost investment and productivity will help to stabilise long-term growth, while the economy will benefit from the green transition.
  • On the data front, the next releases of note come next Friday, when activity data for May will be published, including retail sales, IP and copper production.

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