Moody's lifts Paraguay

Moody's Investors Service said it upgraded Paraguay's key ratings in light of the reduction of debt vulnerabilities thanks to higher export prices and fiscal surpluses recorded in each of the last four years.

Paraguay's foreign and local currency government bond ratings were upgraded to B3 from Caa1, the foreign currency bond ceiling to B2 from B3, the foreign currency deposit ceiling to B3 from Caa2 and the local currency deposit ceiling to Ba2 from Ba3, the agency said, noting that only the local currency bond ceiling was unaffected at Ba1.

The outlook is stable.

"Paraguay's economy has benefitted from the ongoing commodity price boom and the government's moderate policy stance, helping to reduce domestic and foreign debt concerns," said Moody's vice president-senior analyst Gabriel Torres. "Still, Paraguay remains vulnerable to external shocks."

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