Fitch Upgrades Dominican Republic's Credit Rating to BB
Fitch Ratings raised the country's sovereign rating to BB with a stable outlook. The agency also lifted its 2026 growth forecast to 4.5%.
Key points
- Fitch raised the sovereign rating from BB- to BB, with a stable outlook.
- The 2026 growth forecast rose from 3.5% to 4.5%.
- Central government debt is expected to reach 47.9% of GDP by the end of 2026.
- The current account deficit is projected to narrow to 1.2% of GDP in 2026.
Fitch Ratings raised the Dominican Republic's long-term sovereign credit rating from BB- to BB, with a stable outlook. According to the agency, the decision reflects the strength of the country's macroeconomic fundamentals, its ability to respond to international challenges and progress in strengthening public policy.
The Ministry of Finance and Economy (MHE) welcomed the announcement as recognition of the management of economic policy. According to the ministry, the government has worked to preserve macroeconomic stability, strengthen public finances and sustain growth despite an adverse global economic environment.
Fitch attributes the upgrade to medium-term growth prospects, the resilience of fiscal and external accounts, and the approval of tax measures amid international uncertainty. The agency raised its 2026 growth forecast from 3.5% to 4.5%, above the 3.5% median for BB-rated countries. It also expects growth of about 4.5% in 2027 and 2028, driven by tourism, exports, construction and a recovery in investment.
Fitch highlights the approval of the June 2026 Anti-Crisis Plan, which seeks to strengthen public revenue and support the sustainability of state finances. With that progress, the agency removed the negative qualitative adjustment that had applied to the rating due to structural factors.
On public finances, Fitch projects that central government debt will reach 47.9% of GDP by the end of 2026, below the 52.5% median for BB-category countries. The agency also expects the current account deficit to narrow to 1.2% of GDP in 2026, well below the average for countries with a comparable rating.
Finally, Fitch raised the Dominican Republic's country ceiling to BB+, citing greater exchange rate flexibility and reduced restrictions on currency transfers. The agency attributes this progress to the monetary policy led by the Central Bank.
Why it matters
A higher credit rating can help the country borrow internationally on better terms. It is also a sign of the economic stability that supports income, jobs and investment in the Dominican Republic.
With additional reporting from: Acento