Standard & Poor's Improve Bond Ratings in Dominican Republic

Dominican economy has a positive outlook

Standard & Poor's have raised the credit rating of the Dominican Republic in local currency and foreign currencies, going from B to B+ and stressing the improvements achieved in the debt structure and its economic growth.

According to Listin Diario, S&P said that "prospects were stable" as they also improved the evaluation of transfers and convertibility to BB from BB-. S&P said that continued growth will be helped by the reopening of a key nickel mine this year and the planned 2012 production start at Barrick Gold's Pueblo Viejo gold project, the Dominican Republic's largest foreign investment project. Nonetheless the risk assessment agency warns that "Despite buoyant economic growth, fiscal challenges persist as revenue collection lags behind the economic expansion". S&P expects growth to be 5.5% this year.

In turn, Moody's Investors Service rates the Dominican Republic at B1, the same level as S&P's new rating. Both have a stable outlook while Fitch Ratings has put the country one notch lower at B with a positive outlook.

The Fernandez administration is about to make a new US$500 million sovereign bond placement.

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