Wednesday, 11 March 2009

S&P Reaffirms Chile Ratings -- and Sends Warning Over High Corporate Debt Ratios

Everyone keeps saying Chile is the safest country in the region it sounds like a fragment of a Psalm. It became creed. Chile, is true, is a hell of a safe place to invest your money -- but it also has problems, do you know? Standard and Poor's reaffirmed its A+ ratings on the Andean nation, saying its ''record of disciplined fiscal management, which has brought greater economic stability and predictability, supports´´ (the ratings.)

Yet, constraining the ratings are Chile's narrow economic base and high private-sector external debt, said S&P. Although Chile's overall international investment position has improved in recent years, the country's private sector's reliance on external funding makes the country vulnerable to the impact of the global credit crunch.

Unfortunately, we don't have available data on Chile's corporate debt stock, or interest payments, or refinancing needs. We will have them for the next posting -- hopefully it won't be too late by then.

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