Moody's ups Dominican Republic

In its annual report on the Dominican Republic, Moody's Investors Service said the country's B1 government bond ratings - upgraded in April from B2 - reflects a reassessment of the relative credit strength of the government in the wake of the global financial crisis.

The Dominican Republic has demonstrated a level of economic and financial resilience to shocks higher than was captured by the previous rating, Moody's said.

Positive GDP growth in 2009 denoted the increased capacity of monetary and exchange rate policies to manage external shocks and to mitigate the impact of adverse external conditions, the agency said.

A reduced fiscal space and limited access to market financing restricted the government's capacity to adopt counter-cyclical policies, Moody's added.

The upgrade incorporated favorable developments in the country's institutional framework, even though important challenges remain, the agency said.

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