MercoPress. South Atlantic News Agency

Leading risk rating agency further ups Paraguay's gradings

Paraguay is a giant “firmly re-emerging on the right path!,” Peña wrote on X

Paraguay's review by the international rating agency Standard & Poor's (S&P) has been upgraded from “stable to positive,” it was announced Wednesday in Asunción, as President Santiago Peña welcomed this new recognition.

“Another rating agency that recognizes the progress of our country! @SPGlobalRatings upgraded Paraguay's risk rating outlook, recognizing the effort and dedication of all Paraguayans. We are demonstrating to the world that this giant is firmly re-emerging on the right path!” Peña wrote on X. Economy and Finance Minister Carlos Fernández Valdovinos concurred: “Paraguay is consolidating as a stable, reliable, and resilient economy.”

Since July 2024, Paraguay has been improving in international markets where it has already been granted an Investment Grade.

Standard & Poor's Global Ratings raised Paraguay's long-term foreign and local currency “BB+” credit ratings -from stable to positive- highlighted the country's economic growth, strategic projects, and commitment to fiscal prudence, it was explained in Asunción. Now, Paraguay is positioned as a “more resilient and reliable economy in Latin America, one step away from investment grade”.

S&P Global Ratings underscored the Paraguayan government's commitment to fiscal austerity and its impact on stabilizing the country's debt burden. “Growth, along with fiscal prudence, should help stabilize the debt burden following the recent increase,” the company's report mentioned.

In 2023, the rating agency granted the country a BB rating with a stable outlook, while in 2025 this rating will be upgraded to BB+ with a positive outlook.