Asuncion, IP Agency.- Following the historic confirmation of obtaining investment grade, the Ministry of Economy and Finance stressed that this fact reflects the economic and financial strength of the country, as well as its ability to meet its financial obligations.
It also indicates that this rating implies a reduction in credit risk, which facilitates a decrease in the cost of sovereign financing.
In addition, it allows for the expansion of the investor base and the possibility of also reducing the cost of financing for companies.
The credit rating agency Moody’s announced on Friday the upgrade of Paraguay’s credit rating, going from Ba1 to Baa3 with a stable outlook, granting it investment grade for the first time in its history.
This milestone comes 26 years after Moody’s first assigned a credit rating to the country and 9 years after the last upward review.
This remarkable progress is reflected in a significant reduction in the risk premium and a continuous improvement in the country’s credit rating since 2008. Today, the country joins a select group of countries in the region, along with Chile, Colombia, Mexico, Peru and Uruguay.
The rating agency mentions in its press release that the rating upgrade is based on a combination of factors observed over several governments.
These include robust economic growth, greater economic resilience and diversification, and the implementation of a reform agenda that has improved institutional strength and governance.
They also point out that the public investment strategy in infrastructure is being implemented, thereby preserving fiscal strength with a diversification of financing sources.
The statement also indicates that the development of infrastructure will contribute to maintaining a solid flow of investment in non-traditional sectors such as maquila, reforestation, clean and renewable energy. Finally, it is highlighted that these investments will continue to contribute to the process of diversification of the economy.
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2024-07-31 04:29:07
