Dagong maintains sovereign credit rating of Chile

BEIJING - Dagong Global Credit Rating Co Ltd, China's domestic rating agency, on Wednesday maintained the local and foreign currency sovereign credit ratings of the Republic of Chile as AA-, and each with a stable outlook.

Although the economic structure has some problems, the country's relatively strong economic resilience, sound fiscal stance and external liquidity will ease short-term external shock and pressure from the current account deficit, the rating agency said.

Dagong forecast the rate of Chile's economic growth in 2012 and 2013 at 4.3 and 4.5 percent respectively, down from 6 percent in 2011. In the long term, economic growth will be around 5 percent.

With rapid economic recovery and tax reform, the government secured a surplus in its fiscal account in 2011, and is expected to remain in the black over the next 2 years. The limited debt outstanding and the net creditor position indicates the strong solvency of the central government, said Dagong.