- This is the first improvement in the sovereign rating obtained since June 2017; it highlights macroeconomic strength and good debt management.
Moody’s Ratings, a credit rating agency, has upgraded the credit rating of the Dominican Republic, raising it from “Ba3+” to “Ba2” with a stable outlook, which emphasizes the country’s macroeconomic strength, sustained growth, and significant institutional progress.
According to the report published this Friday, Moody’s highlights that the Dominican economy has maintained an average growth rate close to 5% annually over the past 15 years, driven by greater diversification of productive sources, structural reforms, and a stable macroeconomic environment.
Since 2020, the country has not only quickly resumed the growth path after the effects of the pandemic but has also strengthened its institutions at both the legislative and executive levels, supported by an active civil society.
“High political stability, especially compared to other Ba-rated countries and regional peers, helps the Dominican Republic consistently attract high levels of foreign direct investment, increased tourism revenues, and a steady flow of remittances from abroad. These factors support the country’s foreign exchange reserves, which remain at historically high levels, strengthening its external position and limiting its vulnerability to event risks,” the document states.
The agency also highlights improvements in public administration, reflected in greater fiscal planning capacity, prudent debt management, and political and social cohesion that contrasts with the high polarization observed in other countries in the region.
This is Moody’s first sovereign rating upgrade for the Dominican Republic since June 2017. The decision was made following the change in outlook from stable to positive in 2023, when the agency recognized the country’s proactive debt management and institutional progress.
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