OVERVIEW Recent steps in Paraguay to boost investment in infrastructure, along with cautious macroeconomic management, will sustain economic growth and gradually diversify the economy, reducing its volatility. We expect that the government will maintain sufficient support within its own political base to implement recent legislation that aims to attract more investment and strengthen public finances. As a result, we are raising our long-term foreign and local currency sovereign credit ratings on Paraguay to 'BB' from 'BB-'. We are also affirming our 'B' short-term sovereign credit ratings on the country. The outlook is stable, reflecting our expectation for continuity in macroeconomic policies and GDP growth. RATING ACTION On June 11, 2014, Standard&Poor's Ratings Services raised its long-term foreign and
