The international rating agency Moody's confirmed Chile's long-term foreign currency credit rating of A2 with a stable outlook for Chile, after completing its periodic review. In the words of the rating agency, this action is “supported by a long history of prudent macroeconomic and fiscal policymaking,” as well as by its institutions and governance. In addition, Moody's referred to the economic and fiscal performance, in line with its expectations.

The Minister of Finance, Mario Marcel, valued Moody's decision and pointed out that “with this confirmation, in addition to other rating agencies actions, it can be seen that the economic and fiscal management to reestablish macroeconomic balances has paid-off and that the economy has been stabilized and normalized, which is translating into above trend growth in 2024 and 2025. This Government has worked intensely to meet the Structural Balance goals and stabilize the debt, without neglecting the needs of the citizens to provide concrete solutions”.

Moody's also highlighted that our country presents “fiscal strength, reflecting a relatively low but rising debt burden, balanced by a favorable debt structure and the presence of fiscal reserves”. In parallel, it argued that, although an increase in annual social spending driven by increased social demands for greater government support is likely, “we expect Chile's long-standing political consensus on fiscal responsibility to be maintained, preserving the country's overall fiscal strength through future political and economic cycles.”

In addition, the rating agency explained that the scenario that could drive a rating upgrade would be a fiscal consolidation that manages the increase in public debt, as well as the recomposition of sovereign funds. “The rating could be pressured upward if fiscal consolidation proves effective in durably reducing the buildup of government debt from current levels and the government's financial buffers increase significantly. A sustained increase in Chile's medium-term growth prospects, supported by government policies that increase total factor productivity and promote economic diversification, could also put upward pressure on the rating,” the rating agency's report said.

The maintenance of the rating by Moody's, as part of the periodic review process, is in addition to the decision by S&P, which recently upgraded Chile's outlook from negative to stable; and by Fitch, which also ratified the long-term foreign currency rating for Chile at A-, with a “stable” outlook. Moody's determination therefore endorses the country's recent track record in terms of credit risk.

Chile's credit position with Moody's is at the same level of countries such as Lithuania and Slovakia, and above Portugal, Latvia, and the economies of the region.