The track record of macroeconomic stability and pro-market policies has strengthened Paraguay's economic resilience and prospects for more consistent growth. Economic buoyancy will help achieve the government's conservative deficit targets and rebuild fiscal buffers. The rapid convergence of inflation expectations toward the central bank's recently reduced target highlights its growing credibility that, coupled with the expansion of domestic credit, will benefit the country's monetary flexibility. We raised our sovereign credit ratings on Paraguay to 'BBB-/A-3' from 'BB+/B'. We also revised upward the transfer and convertibility (T&C) assessment to 'BBB+' from 'BBB-'. The stable outlook incorporates our expectations of prudent fiscal policies that, coupled with economic growth, will gradually strengthen Paraguay's fiscal buffers. On Dec. 17, 2025, S&P Global Ratings raised
