With solid GDP growth, under control inflation, and investment-grade ratings from Moody's and S&P, Paraguay remains just one notch away from achieving the highest rating from Fitch Ratings.
Asunción, October 2, 2026 — The international credit rating agency Fitch Ratings affirmed Paraguay’s long-term credit rating at “BB+,” maintaining a Positive Outlook following its annual review. This rating highlights the country’s track record of prudent macroeconomic policies and its strong external liquidity position.
Key aspects of the assessment
• The current rating landscape: Paraguay now holds the coveted investment-grade rating from two of the leading global agencies: Moody’s Ratings (Baa3 with a stable outlook, affirmed through July 2026) and Standard & Poor’s Global Ratings (S&P) (awarded at the end of 2025 with a BBB- rating). Fitch remains just one notch away from achieving this with its positive outlook.
• Solid macroeconomic fundamentals: The Paraguayan economy led the expansion in Latin America with real GDP growth of 6.6% in 2025 (well above the median for “BB”-rated countries) and is projected to grow by a robust 4.5% in 2026.
• Stability and low inflation: Inflation stood at a low 1.5% in August, supported by the appreciation of the guaraní and hydroelectric power generation, while expectations remain anchored to the Central Bank of Paraguay’s (BCP) target.
• Controlled public debt: Central government debt stood at a low 31.7% or 36.1% of GDP in 2025 (well below the regional median for the ‘BB’ group, which stands at 51.6%), with an improvement in its composition as well, driven by a reduction in foreign-currency obligations.
• Outstanding requirements and challenges: To achieve the desired upgrade from Fitch, the agency highlights the need to consolidate a credible fiscal strategy, avoid unrecorded payment arrears, and continue making steady progress in governance and the fight against corruption.
