The rating agency also highlights the strengthening of the Dominican Republic's external position, supported by income from tourism, exports, remittances, and foreign direct investment
SANTO DOMINGO.-The Fitch Ratings risk rating agency raised the Dominican Republic's long-term sovereign credit rating from BB- to BB, with a stable outlook, in recognition of the strength of its macroeconomic fundamentals, its responsiveness to international challenges, and the progress made in strengthening public policies.
After learning of this announcement, the Ministry of Finance and Economy (MHE) valued this decision as a recognition of the management of economic policy and the efforts made by the Dominican Government to preserve macroeconomic stability, strengthen public finances and promote sustained economic growth, despite an adverse global economic environment.
In its report, Fitch highlights that this improvement is due to the solid medium-term economic growth prospects, the resilience of fiscal and external accounts, as well as the approval of tax measures in an international context of uncertainty.
The agency revised its growth projection for the Dominican Republic's economy upward for 2026, from 3.5% to 4.5%, above the median of 3.5% for countries with a BB rating. It also anticipates that the country will maintain an expansion rate close to 4.5% during 2027 and 2028, supported by the dynamism of tourism, exports, construction, and the recovery of investment.
One of the most relevant aspects of the evaluation is Fitch's recognition of the institutional advances and the Government's capacity to implement economic policy measures.
The agency highlights the approval of the Anti-Crisis Plan of June 2026, which includes measures aimed at strengthening public revenues and supporting the sustainability of state finances.
This progress led Fitch to remove the negative qualitative adjustment it previously applied to the structural factors rating, considering that the measures adopted are consistent with the sustained improvement of the country's governance indicators, according to the press release from the Presidency.
Debt projections
In fiscal matters, Fitch projects that central government debt will stand at 47.9% of gross domestic product (GDP) at the end of 2026, below the median of 52.5% for countries rated in the BB category, reflecting the Dominican economy's ability to maintain relatively favorable debt levels compared to its peers.
The rating agency also highlights the strengthening of the Dominican Republic's external position, supported by income from tourism, exports, remittances, and foreign direct investment. In this regard, it projects that the current account deficit will decrease to 1.2% of GDP in 2026, significantly below the average of countries with a comparable rating.
Additionally, Fitch raised the Dominican Republic's country ceiling to BB+, highlighting the greater exchange rate flexibility and the reduction of restrictions associated with foreign exchange transfers, which is a clear recognition of the monetary policy led by the Central Bank.
The Ministry of Finance reiterated its commitment to continue advancing in strengthening fiscal sustainability, prudent management of public debt, and the implementation of policies that contribute to consolidating investor confidence and the country's economic development prospects.
The organization states that the improvement in the sovereign rating constitutes a positive signal for the Dominican Republic in international financial markets and reaffirms the importance of maintaining responsible economic policies, solid institutions and a long-term development vision.
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