Paraguay's US$600 Million Notes Rated 'BB'

SAO PAULO (S&P Global Ratings) Jan. 21, 2021--S&P Global Ratings today assigned its 'BB' issue rating to Paraguay's US$600 million notes due 2033, at a 2.739% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Paraguay (BB/Stable/B). Paraguay also raised about US$226 million through a reopening of an existing international bond due 2050. The sovereign will use the proceeds from the issuances for general budgetary purposes and for liability management operations. Our ratings on Paraguay reflect the balance between relatively sound macroeconomic fundamentals and weak political institutions, low per capita income, limited monetary flexibility, and high dollarization in the financial system. Despite an increase in government debt due to the

...January 21, 2021 SAO PAULO (S&P Global Ratings) Jan. 21, 2021--S&P Global Ratings today assigned its '##' issue rating to Paraguay's US$600 million notes due 2033, at a 2.739% interest rate. The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Paraguay (##/Stable/B). Paraguay also raised about US$226 million through a reopening of an existing international bond due 2050. The sovereign will use the proceeds from the issuances for general budgetary purposes and for liability management operations. Our ratings on Paraguay reflect the balance between relatively sound macroeconomic fundamentals and weak political institutions, low per capita income, limited monetary flexibility, and high dollarization in the financial system. Despite an increase in government debt due to the impact of the COVID-19 pandemic and subsequent global downturn, a moderate net external debt profile and government debt burden sustain the ratings on Paraguay. On the other hand,...

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