The credit rating agency Moody's raised Paraguay's credit rating from Ba1 to Baa3, achieving investment grade for the first time. In this way, Paraguay joins the select group of countries in the region that have achieved the long-awaited "investment grade", including Chile, Colombia, Mexico, Peru, Panama and Uruguay.1.
The investment grade represents a significant achievement for Paraguay and reflects key factors that positioned it favorably. Among them, the country's sustained economic growth, its resilience and economic diversification, as well as the implementation of institutional reforms that have strengthened governance. In addition, exchange rate stability and effective management of international reserves contributed to the country's strong external position. This achievement will not only benefit Paraguay in terms of financing costs and attraction of local and foreign investments, but also positions the country in the international market and spotlight, recognizing it as one of the countries with the lowest risk in the region.
The Ministry of Economy and Finance (MEF) has highlighted that:
“"Obtaining investment grade reflects the economic and financial strength of the country, as well as its ability to meet its financial obligations. This rating implies a reduction in credit risk, which facilitates a decrease in the cost of sovereign financing. In addition, it allows the expansion of the investor base and the possibility of also reducing the cost of financing for companies."".
The challenge now lies in maintaining and improving the rating obtained, and continuing to demonstrate to the international community that Paraguay is a reliable country to invest in.
