Santo Domingo. The Ministry of Finance of the Dominican Republic informed that on December 19, Standard & Poor’s upgraded the Dominican Republic’s credit rating from BB- to BB, thanks to the good economic management of the Government.
The credit agency bases the upgrade of these ratings “on the resilience and rapid growth of the Dominican Republic’s economy”; since “the country has demonstrated its capacity to recover quickly”, despite external shocks. It also mentions “recent improvements in the electricity sector” and highlights that the country “recorded an impressive economic recovery”, surpassing the pre-pandemic income level and “resuming its long-term growth trend”.
“Good coordination of the public and private sectors has helped offset demand shortfalls resulting from the global economic slowdown and the conflict between Russia and Ukraine,” the Standard & Poor’s document notes.
The international firm highlights the improvement of the institutional framework in the public administration, which is reflected in its capacity to maintain high economic growth rates, strengthening of fiscal planning and management of public debt.
The Minister of Finance, Jochi Vicente, said that despite an unfavorable international environment, the fiscal measures implemented by the authorities have allowed the country to improve its credit rating without jeopardizing the sustainability of public finances.
“This improvement by Standard & Poor’s is the best evidence of the effort we are making as a Government, both in economic and institutional matters, to reach the goal we have set ourselves: to achieve Investment Grade within the next decade”, stated Vicente.
At the end of 2021, S&P Global upgraded the country’s credit outlook from negative to stable, a decision 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 taken by the State and makes the country more attractive for foreign investment.
In the report, the agency states that “even considering the global interest rate increases, S&P highlights that the country has mitigated the impacts that may occur through liability management operations in recent years”.
