Dark Posted January 10, 2019 Posted January 10, 2019 The outlook for the countries of Latin America and the Caribbean is stable, given that growth and debt structures remain favorable, but there are greater political risks, Moody's Investors Service said in a report released on Wednesday. "Our stable outlook reflects economic growth that continues to be supportive, better debt structures that mitigate liquidity risks and moderate risks for balance of payments," said Ariane Ortiz-Bollin, assistant vice president of the agency. ► Fitch would revise China's rating in the face of excess Beijing stimulus ► Moody's warns of recessions in Turkey and Argentina after crisis ► Moody's: Peru will reach US $ 6 billion in investments under PPP in 2020 "The biggest downside risks to the picture come from national challenges related to changes in each country's economic policies driven by political dynamics," he added. During the year, specific domestic factors will have the greatest impact on the prospects of Latin America's credit rating and not so much the weakness in global growth, according to Moody's. The firm expects domestic growth conditions to continue to be a support factor for the notes, with economic growth expected to be higher in 2019 than in 2018. Moody's also said that while the level of indebtedness of Latin American countries remains high, vulnerability to tighter external financing conditions due to better debt structures in the region and a relatively low dependence on external capital flows is contained. The greatest risk to the region's ratings are the potential destabilizing events of the national policy. Domestic political conditions could move policy priorities in the short term and affect confidence and financing conditions, with a potential impact on fiscal performance and economic growth.
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