KBRA affirms the long- and short-term issuer ratings of the Republic of Chile.
Ratings Outlook
The Stable Outlook reflects the presence of fiscal and external buffers, deep local capital markets and Chile’s strong capacity to absorb shocks. The recent political transition has reduced near-term uncertainty and improved the investment outlook, despite ongoing fragmentation in Congress. These strengths are balanced against Chile’s slow growth compared to EM peers and the continued rise in public debt. External risks persist, including global trade protectionism and high oil prices. However, Chile’s diversified trade relationships limit direct exposure to trade barriers. Sustained global demand for key commodities, particularly copper, should continue to support the external position and medium-term outlook.
Key Credit Considerations
The ratings were affirmed because of the following key credit considerations:
Strong Institutions
Chile’s strong and stable institutions are…
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