On July 31, 2012 Moody’s has upgraded to Baa3 from Ba1 Uruguay´s local- and foreign-currency bond ratings. The outlook remains positive. The economy’s performance has been characterized by robust growth over an extended period of time with GDP reporting average annual growth of more than 6% during 2004-2011. Uruguay’s economic fundamentals have strengthened and potential growth has increased underpinned by an upward shift in total factor productivity. As a result, the economy is capable of reporting higher growth rates on a sustained basis, a condition that benefits Uruguay relative to peers. Moody’s anticipates that positive trends will persist, leading to additional reductions in government debt indicators in the coming years. Moody´s upgrading follows earlier upgrading by Standard & Poor´s in April this year.