2008-06-30 23:48:12 -

- Fitch Ratings today assigned the Oriental Republic of Uruguay's forthcoming, 22-year UI bond a 'BB-' rating. The rating is in line with Uruguay's Sovereign long-term foreign currency Issuer Default Rating (IDR). The UI bond is part of liability management transaction to exchange foreign currency debt maturing by 2015 for UI-denominated 2030 bonds or USD-denominated 2036s (already rated 'BB-' by

Fitch.)

Fitch recently affirmed Uruguay's foreign currency sovereign IDR at 'BB-' and its local currency IDR at 'BB'. The Rating Outlook on both remained Stable. Uruguay's creditworthiness is supported by its manageable financing needs, above-average economic growth, and the country's high institutional quality and political stability. Nevertheless, relatively high fiscal and external solvency ratios, the exposure of public debt to currency risk, and relatively low external liquidity remain as credit weaknesses.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings, New York
Erich Arispe, 212-908-9165
Shelly Shetty, 212-908-0324
or
Media Relations:
Christopher Kimble, 212-908-0226