Paraguay's US$500 Million Notes Due 2033 Rated 'BB'

SAO PAULO (S&P Global Ratings) June 29, 2023--S&P Global Ratings today assigned its 'BB' issue rating to Paraguay's US$500 million notes due 2033, at a 5.85% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Paraguay (BB/Stable/B). The sovereign will use the bulk of the issuance proceeds for general budgetary purposes. Paraguay has repurchased US$70 million of outstanding bonds due 2026, as part of a liability management operation. Our sovereign ratings reflect Paraguay's long-standing commitment to macroeconomic stability and fiscal prudence, which have been key to promoting balanced growth. We expect the economy to rebound 5% in 2023, following 0.1% growth in 2022 due to adverse weather conditions that year.

...June 29, 2023 SAO PAULO (S&P Global Ratings) June 29, 2023--S&P Global Ratings today assigned its '##' issue rating to Paraguay's US$500 million notes due 2033, at a 5.85% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Paraguay (##/Stable/B). The sovereign will use the bulk of the issuance proceeds for general budgetary purposes. Paraguay has repurchased US$70 million of outstanding bonds due 2026, as part of a liability management operation. Our sovereign ratings reflect Paraguay's long-standing commitment to macroeconomic stability and fiscal prudence, which have been key to promoting balanced growth. We expect the economy to rebound 5% in 2023, following 0.1% growth in 2022 due to adverse weather conditions that year. The ratings also incorporate Paraguay's low debt burden--although it's exposed to exchange rate risk--and small fiscal deficits. However, while monetary flexibility is strengthening, it's constrained by high...

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