DR bond rating up
Moody's Investors Service has raised the Dominican Republic's credit rating by one level. DR government bonds are now at B1, an improvement on the previous B2 rating. Moody's said that the Dominican economy's proven capability to resist outside events, as well as the favorable growth prospects for its economy were the basis for the new ratings. Moody's said that despite being a small-sized economy with strong links to the United States, the DR has shown a higher than expected level of resilience to external shakeups. The fact that it managed to show a positive GDP growth rate last year was thought to show that the DR economy has a greater ability to overcome foreign impacts.
"In addition to the Dominican Republic's long-term track record as a high-growth economy, its ability to post positive gross domestic product growth last year denoted an increased ability to overcome external shocks relative to the past," analyst Mauro Leos said in a statement. "This observation has been reinforced by recent indications that growth is resuming at a higher-than-expected pace."
The announcement comes on the heels of the government's US$600 million sovereign bonds placement.
For the observant reader familiar with Dominican currency, you will have noticed that the 10 and 20 pesos notes shown in the above photo are no longer in circulation, having largely been replaced by the 25 pesos coin. 50 pesos is now the smallest denomination for paper money.