Moody’s changes Uruguay banking system to stable

Moody's Investors Service said it revised Uruguay's banking system outlook to stable from negative, reflective of improving credit conditions and the country's economic recovery, which will support a modest improvement in asset quality, profitability and capital.

“The banking sector should be supported by stronger performance in agricultural production, as well as the modest economic recovery in neighboring Brazil and Argentina,” Moody’s said in a news release.

“Moody's expects GDP growth to rebound to an average of 3.2% in 2017 and 2018 after averaging just 1% in the previous two years.

“Furthermore, Moody's expects inflation to fall to 6.4% in 2017, from 11% in May 2016, which is within the central bank's target range of 3%-7%. On the downside, unemployment will remain high in the near-term.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.