S&P: Chile unchanged

Standard & Poor's said its A long-term foreign currency sovereign credit rating and positive outlook on the Republic of Chile (A/positive/A-1 foreign, AA/stable/A-1+ local currency sovereign credit ratings) will not be affected by the modification of the structural fiscal target surplus to 0.5% of GDP from 1.0% announced by President Michelle Bachelet.

This fiscal target rule is calculated on a structural budget that assumes permanent fiscal revenue based on the estimated long-term price for copper, the agency said.

S&P noted that the implementation of the 1% of GDP structural fiscal surplus rule generated an executed fiscal surplus equivalent to 7.9% of GDP in 2006, with a 7.0% surplus expected in 2007.

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