2011-05-31 13:38

BEIJING -- Chinese ratings provider Dagong Global Credit Rating Co said Tuesday it had raised the local and foreign currency sovereign credit rating of Chile from A+ to AA- with a stable outlook.

"The upgrade reflected Chile's improving debt repayment capability," Dagong said in a statement, adding that it made the assessment on the basis of factors including Chile's sustainable economic growth, decreased debt level and its stable financial strength outlook.

Given the huge global demand for copper, the continuity and stability of Chile's government policies and strong domestic demand in the country, Chile's economy will grow 6.5 percent and 6 percent in 2011 and 2012, respectively, compared with the 5.2 percent growth rate last year, according to the statement.

Dagong said Chile's fiscal revenues will jump 15 to 20 percent this year.

Chile's central government debt and public debt accounted for 9.1 percent and 20.3 percent of gross domestic product (GDP), respectively, last year, lower than the average level of 36 percent of emerging economies.

Dagong said the government's deficit is likely to decrease to 8.6 percent of GDP.

Founded in 1994, Dagong is a pioneer in creating credit rating standards on industries, regions and sovereignties in China.