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

SAO PAULO (S&P Global Ratings) Jan. 21, 2022--S&P Global Ratings today assigned its 'BB' issue rating to Paraguay's US$500.6 million notes due 2033, at a 3.849% 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 has used the proceeds from the issuance to repurchase US$221 million of outstanding bonds due 2023 and US$80 million due 2026, as part of a liability management operation and will use the remaining funds for general budgetary purposes. Our ratings on Paraguay balance its sound macroeconomics, favorable fiscal framework, and relatively strong growth prospects, with weak political institutions. Despite a temporary hike in government deficits and debt from the COVID-19 pandemic,

...January 21, 2022 SAO PAULO (S&P Global Ratings) Jan. 21, 2022--S&P Global Ratings today assigned its '##' issue rating to Paraguay's US$500.6 million notes due 2033, at a 3.849% 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 has used the proceeds from the issuance to repurchase US$221 million of outstanding bonds due 2023 and US$80 million due 2026, as part of a liability management operation and will use the remaining funds for general budgetary purposes. Our ratings on Paraguay balance its sound macroeconomics, favorable fiscal framework, and relatively strong growth prospects, with weak political institutions. Despite a temporary hike in government deficits and debt from the COVID-19 pandemic, Paraguay's comparatively low narrow net external debt and net general government debt burden are key rating strengths. Conversely, Paraguay's political fragility and evolving political institutions...

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