(Bloomberg) -- Paraguay’s credit score was upped to investment grade by Moody’s Ratings, marking a victory for one of the fastest growing economies in South America.
The rating was upgraded to Baa3 from Ba1, putting Paraguay on the first rung of investment grade and on par with Panama and India. The ratings company cited the country’s efforts to stoke growth while making its economy more resilient to shocks.
“A track-record of implementation of institutional reforms coupled with Paraguay’s long-standing sound monetary and fiscal policy frameworks support our improved assessment of institutions and governance strength,” Moody’s strategist Samar Maziad wrote in a statement Friday.
The country’s dollar bonds were among the best performers in emerging markets on the day, with notes due in 2044 gaining 1 cent to trade at 97.9 cents on the dollar, according to indicative pricing compiled by Bloomberg.
Paraguay’s gross domestic product expanded by 3.8% last year, according to the International Monetary Fund, outpacing its neighbors. The soybean exporter has won praise from ratings firms in recent years for its consistent policies, low inflation and disciplined public finances.
S&P Global Ratings raised the country to BB+ in February — one notch below investment grade — with a stable outlook. Fitch Ratings also gives Paraguay a BB+ rating with a stable outlook.
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