S&P rates Paraguay notes BB

Standard & Poor's said it assigned its BB issue rating to the Republic of Paraguay's second issuance of $1 billion bonds due in 2044.

Proceeds will be used to fund infrastructure and energy projects as well as to assist other sectors of the economy, such as agriculture and public housing.

S&P said the ratings on Paraguay reflect its limited monetary flexibility, low per-capita income and shortfalls in physical infrastructure and its still-evolving political and public institutions.

They also reflect a relatively strong external position, low debt burden and moderate fiscal flexibility, the agency said.

Paraguay's evolving political institutions limit how quickly it can achieve its social and economic objectives. As a result, S&P expects sustained, but only gradual, progress in the various investment projects that the government has announced.

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