S&P lowers Paraguay to stable

S&P said it revised the outlook on the long-term ratings on the Republic of Paraguay to stable from positive.

The agency also said it affirmed the BB long-term and B short-term foreign- and local-currency sovereign credit ratings on Paraguay.

S&P also said it affirmed the BB+ transfer and convertibility assessment.

The outlook revision considers that the progress in the country’s growth trajectory, fiscal out-turn, external liquidity and indebtedness will not outperform previous expectations, the agency said.

S&P said it does not believe this deterioration has detracted from Paraguay's creditworthiness.

But structural challenges that continue to limit policymaking effectiveness could lead to external weakening, particularly in a context of sluggish commodity prices and continued economic contraction in Brazil and Russia, the agency said.

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