S&P, Moody's Eye If Chile Can Use Copper Windfall to Boost Economic Growth.

Credit rating agencies are closely monitoring Chile's ability to use high copper prices to stimulate economic growth and improve its fiscal position. Despite being praised for having the best credit rating in Latin America, Chile has experienced downgrades due to political and social unrest. While the surge in copper prices could lead to increased tax revenues and economic growth, credit agencies remain cautious due to Chile's previous years of lackluster growth and challenges in building new mines. Moody's Ratings plans to revise its growth forecast for Chile upwards, but both Moody's and S&P Global Ratings expect Chile's debt levels to continue rising. Chile's President Gabriel Boric is proposing a tax reform initiative to finance social programs, which credit agencies are closely monitoring for potential risks. However, experts view Chile as a responsible economic policy maker in the region. [Extracted from the article]