Moody's changes Chile view to negative

Moody's Investors Service said it changed the outlook to negative from stable on the government of Chile and affirmed the A1 long-term local- and foreign-currency issuer and senior unsecured ratings.

“The negative outlook reflects increasing risks to Chile's fiscal strength. Even though the country entered the coronavirus crisis with fiscal buffers and low debt relative to A-rated peers, debt to GDP had been rapidly rising in recent years, a trend that is being accelerated by the pandemic shock. Moody's expects debt to almost double relative to GDP in a five-year period, reaching 39% in 2021,” the agency said in a press release.

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