When the Republica Oriental del Uruguay sold a 10-year bond on the international debt markets in September 1996, officials at the Banco Central were pleased to note that the 160 basis point spread was tighter than some recent offerings from investment grade-rated sovereigns, strength-ening their belief that Uruguay was ready for an upgrade.
“We decided that the market had already awarded us an investment-grade rating, but we still needed the certificate,” comments Daniel Vaz, head of economic research at the Banco Central in Montevideo, and so a decision was taken to approach the rating agencies in order to better explain the Uruguayan story.
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