Developing political institutions and volatile economic performance continue to restrict our ratings on the Republic of Paraguay. Paraguay has a solid fiscal position, a low government debt burden, and sound external indicators. We are affirming our 'BB-/B' foreign and local currency long- and short-term sovereign credit ratings on Paraguay. The stable outlook reflects our view that there is less than a one-in-three chance that we would change the rating over the next year as institutional and political challenges, low economic development, and a volatile economy offset the ambitious reform agenda of the new Administration. On Dec. 6, 2013, Standard&Poor's Ratings Services affirmed its 'BB-/B' foreign and local currency long- and short-term sovereign credit ratings on the Republic of
