S&P pumps up Paraguay ratings

S&P said it raised the long-term foreign- and local-currency ratings on Paraguay to BB+ from BB.

“The upgrade reflects Paraguay's track record of evolving but prudent macroeconomic policies, moderate fiscal deficits and general government (GG) debt, as well as a strong external position. All these characteristics have bolstered the Paraguayan economy's resiliency against external shocks, and caused GDP per capita to rise consistently,” the agency said in a press release.

However, S&P noted, “The ratings continue to be constrained by evolving institutions and weaker than peers' monetary transmission mechanism. Effective political and economic management that continues to strengthen Paraguay's checks and balances, pass reforms to sustain medium-term growth, and deepen the domestic capital market could reduce the country's vulnerabilities to the level of those of investment-grade sovereigns.”

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.