Continued favorable developments will be necessary to put Laos' debt stock, which is just under 90% of GDP on a net basis, on a more sustainable footing. Macroeconomic conditions are improving. The government's fiscal position is near balance, its current account is set for a third straight year of surplus, foreign exchange reserves are on the rise, and annual inflation has fallen below 10%. Elevated government debt denominated in foreign currency makes Laos' debt-to-GDP ratio vulnerable to potential currency shocks. Private sector savings remain heavily dollarized, and the domestic financial sector is less developed. We assigned our 'CCC+' long-term and 'C' short-term sovereign credit ratings on Laos. The outlook on the long-term rating is positive. On Oct. 23, 2025, S&P
