KBRA Affirms A/AA- Long-Term Ratings for the Republic of Chile; Outlook Stable
26 Jan 2024 | 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 and its resilience to shock against the weak global geopolitical and macroeconomic environment. Chile’s credit profile is underpinned by strong access to liquidity through its capital markets and sovereign wealth funds. KBRA acknowledges that there is a large degree of uncertainty surrounding the political environment and the government's reform programme. The Stable Outlook also reflects Chile’s fiscal resiliency through successive external shocks and the sovereign’s ability to quickly correct its public finances through policy discipline.
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