The risk rating agency Fitch Ratings kept the Dominican Republic perspective and reaffirmed the BB-ratednoting in its recent report that the assessment is supported by a track record of strong economic growth, a diversified export structure and favorable governance scores.
The rating agency highlighted in its publication that government subsidies to contain fuel, electricity and food prices have prevented a further increase in inflation in 2022.
Regarding debt, the firm projects that this, as a percentage of gross domestic product (GDP), will decrease to 47.1% this year and will remain stable around 48% going forward, below the “BB” average, which is around 54%.
He mentions the challenges that can be faced in 2023 due to the levels of rates, however, Fitch acknowledges that the country has a considerable margin of cashwhich offers you greater flexibility to take advantage of the financing markets strategically combined with an increase in the availability of financing with multilaterals.
The Minister of Finance, Jochi Vicente, He indicated that managing to maintain the rating in an adverse world economic scenario, after an improvement in the outlook last year, is the product of the constant effort of the Government to maintain the balance of the fiscal accounts and the growth of the country.
Meanwhile, the Vice Minister of Public Credit, María José Martínez, stated that “As a government, we have improved most of the global governance indicators and we are going to continue our work in that direction, with the goal that the country reaches, in the shortest possible time, the investment grade”.