Fitch Rates Uruguay bond B+

Fitch Ratings said it expects to assign a B+ rating to Uruguay's upcoming €300 million global bond due 2016.

The rating will be in line with Uruguay's long-term foreign currency rating, on which the outlook is stable, Fitch noted.

Proceeds from the bond issue will be used to refinance debt maturities and for general budgetary purposes, the agency added.

According to Fitch sovereign analyst Morgan C. Harting, "Uruguay's ratings reflect its improving debt dynamics based on currency strength, economic growth and fiscal control. On the other hand, public and external debt ratios are still higher than peers, there are concerns about long-term economic growth, and the highly dollarized financial system remains vulnerable."

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