Mauritius’s sovereign credit rating was increased by Moody’s Investors Service to Baa1, the third- lowest investment-grade, with a stable outlook.
The credit upgrade of the Indian Ocean island nation marked a one-step increase from Baa2, Moody’s said in a statement today. The credit rating company cited stronger government institutions, increased diversification of the economy and a lower debt burden in its statement.
“Mauritius has undertaken various steps, including broadening its economic cooperation with China and India, and is actively transitioning the economy from a comparatively low- skilled exporter to that of a highly-skilled service-based economy,” Aurelien Mali, a London-based sovereign credit analyst at Moody’s, wrote in the statement. “Progress in this area will mitigate the economy’s external vulnerabilities.”
Mauritius’s rupee declined 0.7 percent to 30.9 per U.S. dollar today, extending its loss this quarter to 6.3 percent. Today’s trading ended before Moody’s announced the upgrade.
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