The Central Bank of Paraguay published a note highlighting Moody’s latest affirmation of Paraguay’s sovereign rating at Baa3 with a stable outlook, preserving investment grade status. The central bank said the rating agency’s assessment pointed to continued macroeconomic and financial stability, with inflation remaining within the Central Bank of Paraguay’s target range, the policy rate held at 6%, and medium-term inflation expectations aligned with the 3.5% objective. Moody’s also cited the banking sector’s high provisioning and capital ratios as factors limiting financial risk exposure. In addition, the agency pointed to Paraguay’s ongoing economic diversification, solid gross domestic product growth and positive results under International Monetary Fund-backed programs. The central bank said the rating affirmation reflects continued progress in strengthening institutions and maintaining responsible macroeconomic policies.
Central Bank of Paraguay2025-08-19
Central Bank of Paraguay highlights Moody’s affirmation of Paraguay at Baa3 with stable outlook
The Central Bank of Paraguay highlighted Moody’s decision to keep Paraguay’s sovereign rating at Baa3 with a stable outlook, maintaining investment grade status. Moody’s cited inflation within target, a 6% policy rate, aligned medium-term inflation expectations and a well-capitalized banking sector. It also pointed to economic diversification, solid GDP growth and positive results under International Monetary Fund-backed programs.