Standard & Poor’s reaffirms Dominican Republic’s ‘BB’ rating with stable outlook
Santo Domingo.- Standard & Poor’s (S&P Global) has reasserted the Dominican Republic’s credit rating as “BB with a stable outlook.” This decision reflects the country’s strengthened governmental institutions and the ability to sustain high economic growth rates, improved fiscal planning, and better public debt management.
In December 2022, the credit rating of the Dominican State was upgraded from “BB-” to “BB”, marking the highest credit rating achieved by the country. S&P Global emphasizes that macroeconomic stability will continue to underpin these positive outcomes.
The S&P report specifically notes the reduction in inflation, attributed to measures implemented by the Central Bank in 2023. It also projects a swift return of the country’s economic growth to its long-term levels. Furthermore, the robust performance of the tourism sector is credited for contributing to the expansion of the Gross Domestic Product (GDP) and reducing the current account deficit.
A potential further improvement in the rating hinges on the approval and implementation of reforms enhancing fiscal and debt planning, leading to lower fiscal deficits.
Minister of Finance Jochi Vicente highlighted the government’s submission of the Fiscal Responsibility Law draft to the National Congress in 2023. This law aims to ensure the sustainability of public finances. Vicente acknowledged the challenges faced both domestically and internationally, noting that the government’s improvements and reforms have positively impacted the country’s credit evaluation. This, he says, translates into more and better opportunities for the nation.
Vice Minister of Public Credit, María José Martínez, further explained that the improvements in credit rating achieved under the current administration provide the Dominican State with access to capital markets at lower interest rates. This enhances the country’s appeal for foreign investment.