NEW YORK Jan 10 Fitch assigned Paraguay an
initial rating of BB-minus with a stable outlook on Thursday,
saying the grade balanced the country's strong balance sheets
against factors such as commodity dependence and economic
"The Paraguayan economy has shown higher average growth
rates relative to the 'BB' median, but growth volatility has
also been greater due to the large size of its agriculture
sector and the negative shocks it receives from adverse weather
cycles," the rating agency said in a statement.
Paraguay's economy shrank 1.2 percent last year due to a
poor soy harvest and a foot-and-mouth disease outbreak that hit
beef exports, but the central bank expects a 10.5 percent bounce
Moody's Investors Service rates the country Ba3 with a
stable outlook. Standard & Poor's rates the country BB-minus,
also with a stable outlook.