By Natalie Weger

Moody's upgraded the Dominican Republic citing its high growth rates and diversified economy.

The ratings agency upgraded to Ba2 from Ba3 the country's long-term local, foreign-currency issuer and senior unsecured debt ratings. The outlook was revised to stable from positive.

The Dominican Republic's high growth rates and economic diversification has enhanced income levels and the country's economic strength, Moody's said. Recent improvements to institutional quality and policy frameworks, along with a track record of political stability and social cohesion, has boosted the nation's to shocks, Moody's said.

The country's rating is also supported by robust foreign direct investment, tourism receipts and remittances, which lessen its exposure to external vulnerability risks.

While Moody's expects the Dominican Republic to make progress on revenue collection and reforms, constraints on fiscal strength will likely continue to limit the government's credit profile at the Ba2 level in the near- to medium-term, the ratings agency said.

Write to Natalie Weger at natalie.weger@wsj.com

(END) Dow Jones Newswires

August 01, 2025 17:15 ET (21:15 GMT)

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