The good economic management that the Government has carried out has been the essential element for the risk agency to Standard & Poor’s (S&P Global) will improve the credit rating of the country, raising it from “BB-” to “BB”.
The report of the credit agency, published this Monday, highlights that The Dominican economy exhibits a high rate of economic growth and resilience to external shocks.
Additionally, it is mentioned that the Economic recovery it has allowed not only to exceed pre-pandemic levels but to resume its long-term growth trend.
“The good coordination of the public and private sectors It has helped to offset demand shortfalls resulting from the global economic slowdown and the conflict between Russia and Ukraine,” the document states.
Similarly, the signature highlights the institutional improvement in public administration, which is reflected in its ability to maintain high rates of economic growth, strengthening fiscal planning and public debt management.
Evaluate fiscal measures
The Finance Minister, Jochi Vicente, specified that, despite an unfavorable international environment, the fiscal measures applied by the authorities have allowed the country to improve its credit rating without jeopardizing sustainability of public finances.
“This improvement by Standard & Poor’s is the best evidence of the effort we are making as a Government, both economically and institutionally, to achieve the goal we have set ourselves: achieve Investment Grade in the next decade,” he declared. vincent.
At the end of 2021, S&P Global upgraded the country’s credit outlook, raising it from negative to stable, decision that was based on the impressive local economic recovery, which managed to reverse the external deterioration caused by Covid-19.
Meanwhile, the Vice Minister of Public Credit, María José Martínez, explained that the improvement to BB has a positive impact on the cost of financing that the State takes and makes the country more attractive for the reception of foreign investment.
In the report, the agency maintains that “even considering the increases in interest rates globally, S&P highlights that the country has mitigated the impacts that may be produced through liability management operations in recent years.”
Details
The finance minister Jochi Vicnte published on his Twitter account that with this rating the risk agency Standard & Poor’s “has ‘upgraded’ our risk rating from BB- to BB. We are one of the few countries in Latin America that has received an upgrade this year.”
The minister said in this regard that this brings the country closer to being an investment grade objective in a term of no more than 10 years.
Recognizes progress
The Minister of Finance indicated on his Twitter account that the rating agency recognizes the achievements made in the last two years.
Maturity
Vicente says in his account that the agency also recognizes that the Dominican Republic enjoys political maturity, which makes public policies predictable.