...Credit Strengths and Weaknesses: Chile's ratings are supported by a relatively strong sovereign balance sheet, with government debt/GDP below that of peers. The ratings also reflect Chile's solid governance and record of credible macroeconomic policies centered on an inflation-targeting regime and flexible exchange rates. These strengths are balanced by per- capita income that Fitch Ratings projects will remain low relative to peers, high commodity dependence, and relatively weak external debt and liquidity metrics. Reform Advances; Coalition Tested: President Jose Antonio Kast's coalition holds a stronger congressional position than prior center-right governments but relies on centrist swing parties to pass legislation. His approval fell to around 40% in August amid weaker growth and rising inflation. A security reform has stalled in the Senate, highlighting the risk of gridlock. Capital markets reform is next on the agenda and could meaningfully deepen local markets if approved. Omnibus...
