Fitch upgrades Paraguay

Fitch Ratings said it upgraded Paraguay's long-term foreign- and local-currency issuer default ratings to BB+ from BB.

The outlook also was revised to stable from positive.

The upgrade reflects the sovereign's demonstrated resilience to external shocks, favorable growth performance combined with evidence of economic diversification, strengthened external buffers and continued commitment to macroeconomic discipline, Fitch said.

Paraguay's general government debt to GDP is the lowest in the BB category, estimated at close to 17% of GDP in 2018, the agency said.

Paraguay's growth has averaged 4.3% over the last five years despite numerous external shocks, including a deep recession in neighboring Brazil in 2015 to 2016, a fall in commodity prices in 2014 to 2015 and most recently economic volatility and the sharp depreciation in the Argentinean peso in 2018, Fitch explained.

Paraguay's government also has developed a track record of prudent and consistent macroeconomic policies, the agency said.

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