Paraguay Achieves Second Investment Grade Rating with Standard & Poor’s

Paraguay achieved its second investment grade rating after Standard & Poor’s upgraded the country’s sovereign credit rating to BBB-. The improvement places Paraguay’s economy within the lower-risk category recognized by international rating agencies. The announcement strengthens the country’s financial standing and complements the Baa3 rating granted by Moody’s in 2024.

Standard & Poor’s revised Paraguay’s rating from BB+ to BBB-. With this adjustment, the country formally enters the investment grade range within the agency’s scale. The assessment highlights Paraguay’s macroeconomic profile, fiscal stability, and capacity to service sovereign debt. It also confirms a lower relative risk of default compared to other regional issuers.

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Economy Minister Carlos Fernández Valdovinos officially announced the decision at a press conference. He stated that the new rating represents strong backing for the country’s economic management and enhances Paraguay’s credibility in international markets. According to the minister, the recognition expands opportunities to attract foreign capital and to access financing under more favorable conditions.

President Santiago Peña also commented on the impact of the announcement following the agency’s decision. He noted that Paraguay is experiencing a significant moment in terms of its international positioning. His remarks were made during the official dissemination of the country’s new credit status.

Standard & Poor’s endorsement adds to the rating previously granted by Moody’s, which in July 2024 assigned Paraguay a Baa3 rating. The alignment of both global agencies places the country in a favorable position within the international financial system. Having two investment grade ratings strengthens perceptions of economic stability and predictability.

Achieving investment grade status has direct effects on access to capital markets. It allows the government to issue debt at more competitive interest rates and with longer maturities. It also facilitates financing for local companies that meet required standards. However, challenges remain at the microeconomic level to ensure that the benefits of this recognition are more broadly reflected across the population.

Lea el artículo en español aquí.