Large forestry and energy projects augur well for Paraguay's economic diversification, more sustainable GDP growth, and lower external vulnerability. Growth, coupled with the government's commitment to fiscal austerity, should help stabilize the debt burden after the recent increase. We revised our outlook to positive from stable and affirmed our 'BB+/B' sovereign credit ratings on Paraguay. The positive outlook suggests a one-in-three chance of an upgrade if robust growth and fiscal prudence bolster the sovereign's finances and stabilize its debt burden at a low level, strengthening the country's resilience against unexpected shocks. On Jan. 8, 2025, S&P Global Ratings revised its outlook on its 'BB+' long-term foreign currency and local currency sovereign credit ratings on Paraguay to positive from stable. We
