Moody's sees gains for Latam, Caribbean ratings

Moody's analysts expect to keep raising the sovereign debt ratings of Latin American and Caribbean countries in 2011.

The region's economies prospered in 2010 while developed nations lingered in recession or anaemic recovery, the analysts wrote in a regional outlook report Thursday.

A total of 10 countries were upgraded in 2010, while three others were assigned positive outlooks.

Moody's, an international ratings agency, says the nations are likely to build on those gains because of strong domestic demand, rising commodity prices and the global economic recovery.

Within Latin America, South American countries are likely to grow more slowly, while their Central American and Caribbean neighbours expand and catch up, the report says. It says Latin American countries will be less vulnerable to market shocks because they are borrowing for longer periods and building up reserves of foreign currencies.

The main risk faced by the region comes from China, the report says.

The region depends heavily on demand from the United States and China. Export demand could decline if the US recovery is anaemic or if China's growth slows.

- AP