Chile Credit Rating Stays at A as S&P Warns Budget Repair Will Take Longer
Chile has the highest credit rating in Latin America, and S&P Global Ratings has kept it at A. But the agency now expects the country's budget repair to take longer, with debt rising until 2029. The post Chile Credit Rating Stays at A as S&P Warns Budget Repair Will Take Longer appeared first on The Rio Times .
S&P Global Ratings has maintained Chile's credit rating at A, despite warning that budget repair efforts will take longer than expected. The rating agency, which is among the top three that assess government debt, now projects Chile's net public debt to reach 41% of annual economic output (GDP) by 2029, up from the previously expected 37%.
This rating affirmation covers both Chile's foreign-currency debt, which is denominated in dollars and other currencies, and its local-currency debt, which is rated at A+. S&P's outlook on both types of debt remains stable, indicating no immediate changes are anticipated. The Finance Ministry, headed by Jorge Quiroz since March, highlighted S&P's acknowledgment of the authorities' commitment to fiscal restraint, as well as the National Reconstruction Law passed without a majority in Congress.
This law accelerates environmental approvals for major projects and gradually reduces the corporate tax rate from 27% to 23%.
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