S&P: Paraguay on watch

Standard & Poor's said it put its BB-/B sovereign credit rating on the Republic of Paraguay on CreditWatch negative following the recent impeachment of President Fernando Lugo.

According to S&P, the Lower House of Congress initiated the impeachment by a 76-1 majority in a session on June 22. On June 23, the Senate approved the final impeachment of Fernando Lugo by a vote of 39-4.

"The CreditWatch Negative reflects the rising credit risks due to the possible political and economic ramifications of the abrupt change in government, and the exit of key economic officials in the government ó specifically Finance Minister Dionisio Borda and Jorge Corvalan, president of the Central Bank of Paraguay," said S&P credit analyst Richard Francis in a news release.

© 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.