NEW YORK, Dec 2 (Reuters) - Moody’s Investors Service on Thursday upgraded Bolivia’s foreign currency sovereign credit rating one notch to B1 from B2, citing lower debt burdens than its ratings peers and reduced domestic political turmoil.
The outlook on the credit, still deep within the highly speculative range, is positive, the firm said in a statement.
“A combination of debt forgiveness and recent years of fiscal surpluses led to a drop in Bolivia’s main debt indicators. The ratio of government debt to revenues, a key indicator for Moody’s sovereign analysis, will be below 120 percent this year after peaking at 350 percent in 2003,” Moody’s sovereign credit analyst Gabriel Torres said.
“Going forward, even though we do not anticipate continued government surpluses, we expect that a moderate fiscal stance should not have a major impact on the debt numbers,” he added.
Moody’s rating now matches the B-plus rating of Fitch Ratings while Standard Standard & Poor’s has it one notch lower at B. (Reporting by Daniel Bases)