Standard and Poor's raise Dominican Republic 's rating to 'B+' from 'B'

Dominicantoday.com, Santo Domingo , September 6 th 2007

FrNew York, NY.- Standard & Poor's Ratings Services said it has raised the long-term sovereign credit rating on Dominican Republic to 'B+' from 'B', with a stable outlook.

The ratings agency said the upgrade reflects continued passage and implementation of structural reforms aimed at improving governance and an improvement in general government fiscal balances due to tax reforms passed in 2006, the country's third since 2004. S&P, however, kept the short-term sovereign credit rating of Dominican Republic at 'B'.

The ratings agency said the tax reforms include laws that criminalize electricity theft and a plan to recapitalize the central bank over a 10-year period.

S&P said the free-trade agreement between the US and Dominican Republic, effective March 2007, will help boost Dominican Republic 's foreign direct investment.