KBRA Affirms A/AA- Long-Term Ratings for the Republic of Chile; Outlook Stable
24 Jan 2025 | Dublin
KBRA Europe (KBRA) affirms the Republic of Chile’s long-term issuer ratings of A (foreign currency) and AA- (local currency). KBRA also affirms the short-term ratings of K1. The Outlook on the long-term ratings is Stable.
| This credit rating is an unsolicited credit rating. | |
|---|---|
| With Rated Entity or Related Third-Party Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA’s affirmation of the ratings for the Republic of Chile reflects the sovereign’s small, open, and diversified economy, and its strong and stable institutions, while sound macroeconomic policies, which centre on fiscal savings through sovereign wealth funds, bolster resiliency. The Stable Outlook balances the strengths of Chile’s economy, its resilience to shock and its ongoing efforts to repair public finances. Chile’s credit profile is underpinned by strong access to liquidity through its deep and captive capital market and the rebuilding of its sovereign wealth funds. KBRA acknowledges that there is a large degree of uncertainty surrounding the political environment and government reform agenda. The Outlook also reflects Chile’s fiscal resiliency through successive shocks thanks to policy discipline. In KBRA's view, the recent pension reform agreement is expected to have a positive impact on the local bond market.
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