Fitch maintained Paraguay’s credit rating and raised its investment grade rating.
Fitch Ratings issued the evaluation report in which it confirmed Paraguay’s BB+ rating and its stable outlook. Significantly, It also raised its investment grade.
“Great news!. Fitch reaffirmed the sovereign rating and upgraded PGY’s country ceiling. This allows companies in Paraguay with outstanding performance to qualify for INVESTMENT GRADE. We continue working to improve the country’s economy,” highlighted the Minister of Economy, Carlos Fernández Valdovinos.
The factors exposed by the rating agency are the economic policy of the current Government and the promotion of a green and favourable agenda for companies to strengthen the role of the private sector in the economy, in addition to promoting formal employment.
“This tells us that some businesses are already in the first division, and soon, the entire team will be in the first division. So it is a preliminary step and excellent news,” said the minister in an interview with radio Universo 970 AM- Nación Media.
He explained that this would influence many more people to come to the country, invest, and buy the country’s assets and many jobs will be therefore generated.
Fitch forecasts growth of 5.2% for 2023, driven mainly by the recovery of the agricultural and hydroelectric sectors, after a decline to 0.1% in 2022 due to the drought.
Likewise, they estimate that growth will remain solid at 4.5% in 2024 and 2025, supported by a portfolio of large investment projects in cellulose, green hydrogen and biofuels.
The aforementioned investments, added to the gradual growth of the maquila sector, support efforts to encourage Paraguay’s economic diversification.
With this, Paraguay maintains its credit rating with the three risk rating agencies, Standard & Poor’s, Fitch and Moody’s, in a complex regional scenario in which other countries have worsened their risk rating and prospects in recent years.
Source: Today PY
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