The upgrade to Ba3 is underpinned by strong growth potential, supported by the increasingly efficient use of labor and capital in the economy, according to Moody's.
The agency explained that a long average maturity of government debt and a diminishing reliance on foreign-currency debt pointed to a stable and gradually moderating government debt burden, particularly when strong growth has been sustained over time.
The upgrade also reflects improvements in the banking sector's health, which Moody's expects to be maintained.
