Moody’s Upgrades Chile’s Foreign Debt rating

On July 7th, Moody’s Corporation, the holding company for Moody’s Investors Service, reported an important upgrade of two levels for Chile, from Baa1 to A2, thus improving its sovereign credit rating.

This is an important assessment for international investors; however, the surprising aspect of the new rating by Moody’s was not the upgrade itself, but rather the magnitude of the new rating as compared to the old.

Chile is now considered by Moody’s as a low-risk country for foreign investment. This upgrading now matches Standard & Poor’s rating, one of the world’s foremost providers of credit ratings and risk evaluation.

The upgrade is a very clear sign for investors that their money is increasingly safer in Chile. This is an attribute to Chile’s high standards and openness regarding foreign investments, and the magnitude of the new ratings indicates its solid and rapidly growing economy.