Bulletin: Paraguay Ratings Remain Unchanged Following Bond Reopening For $450 Million

BUENOS AIRES (S&P Global Ratings) Jan. 17, 2020--S&P Global Ratings said today that its 'BB' issue-level rating on Paraguay's notes due 2050 remains unchanged following a reopening. Paraguay has raised US$450 million through a reopening of its existing US$500 million international bond issued in February 2019. The government will use the issuance's proceeds to finance capital expenditures on transportation and urban infrastructure and to refinance a portion of its outstanding debt. The 'BB' long-term sovereign ratings on Paraguay reflect its institutional weakness and evolving political system, as well as its economic growth at higher levels than most Latin American peers, but which is concentrated in few commodities and trading partners, making it prone to volatility. At the same time, the

...January 17, 2020 BUENOS AIRES (S&P Global Ratings) Jan. 17, 2020--S&P Global Ratings said today that its '##' issue-level rating on Paraguay's notes due 2050 remains unchanged following a reopening. Paraguay has raised US$450 million through a reopening of its existing US$500 million international bond issued in February 2019. The government will use the issuance's proceeds to finance capital expenditures on transportation and urban infrastructure and to refinance a portion of its outstanding debt. The '##' long-term sovereign ratings on Paraguay reflect its institutional weakness and evolving political system, as well as its economic growth at higher levels than most Latin American peers, but which is concentrated in few commodities and trading partners, making it prone to volatility. At the same time, the ratings incorporate Paraguay's net external creditor position and its low debt burden, with only small fiscal deficits. The stable outlook reflects our expectation that Paraguay will...

Bulletin