Paraguay's macroeconomic stability and excess supply of renewable energy are attracting investments, which would sustain growth and a gradual economic diversification. We expect pragmatic fiscal policy to result in a gradual government fiscal consolidation and stable debt levels. As a result, we raised our long-term sovereign credit ratings on Paraguay to 'BB+' from 'BB' and affirmed our 'B' short-term sovereign credit ratings. We also revised upward our transfer and convertibility (T&C) assessment to 'BBB-' from 'BB+'. We plan to assign a 'BB+' issue rating to the sovereign's proposed market debt. The stable outlook reflects our expectation that Paraguay's consistent economic growth could mitigate expenditure pressure and support debt stabilization. On Feb. 1, 2024, S&P Global Ratings raised the long-term foreign
