Political disputes and episodes of domestic violence following the proposed constitutional amendment that would allow a president to run for a second term indicate Paraguay's political divisions across parties and ongoing challenges to policy implementation, which we view as rating constraints. At the same time, its prudent macroeconomic policy and low indebtedness levels continue to support its creditworthiness. We are affirming our 'BB/B' long- and short-term sovereign credit ratings on Paraguay. The stable outlook reflects our expectations that structural challenges and implementation difficulties will continue to hamper Paraguay's policymaking effectiveness, while the economy will continue to demonstrate resilience and debt levels will remain low amid moderate fiscal deficits. On June 13, 2017, S&P Global Ratings affirmed its 'BB/B' long- and
