Still-developing institutions continue to limit Paraguay's policymaking effectiveness and its implementation capacity. At the same time, the country's still-solid external position has weakened on growing external indebtedness, and we expect it will continue to weaken in a context of subdued commodity prices and weak economic performance of trade partners. We are revising our outlook on Paraguay to stable from positive, and we are affirming our 'BB/B' long- and short-term sovereign credit ratings. The stable outlook balances slow agenda and reform progress and a somewhat weaker external position against the resilience of Paraguay's economic growth and our expectation that debt levels, although increasing, will remain low. On June 15, 2016, S&P Global Ratings revised its outlook on the long-term ratings on
