Country risk and markets
Paraguay's credit rating: what it means for a foreign investor
· By Rodrigo D. Ruiz-Diaz Perrier
Paraguay's credit rating is, together with the macro data, the first figure any fund or institutional investor checks before looking at the country in detail. And the recent news is good.
The milestone: Paraguay reaches investment grade
In late 2025, Paraguay achieved the long-sought investment grade rating from two of the three major international agencies, as confirmed by the Ministry of Economy and Finance. This means agencies such as S&P Global consider Paraguay's sovereign debt to carry low default risk, which lowers the country's financing costs and, in turn, improves conditions for private investors.
What exactly is a sovereign credit rating?
It is a grade (letters such as AAA, BBB-, CCC+...) summarising a country's ability and willingness to pay its debt. The higher it is, the lower the perceived risk and the lower the interest rates the market demands. Datosmacro and the rating agencies themselves (S&P, Moody's, Fitch) publish and update these grades periodically.
Local rating agencies: the other meaning that confuses many people
Paraguay also has local Risk Rating Companies (such as Feller Rate), supervised by the National Securities Commission, which rate the solvency of companies, banks and securities listed on the Asunción Stock Exchange. If you were searching for this — the score of a specific company, not the country — these are the sources to check (bcp.gov.py and bolsadevalores.com.py).
What investment grade means for anyone looking to invest in Paraguay
In practice: more international institutional funds can now include Paraguayan debt in their portfolios (many mandates require investment grade as a minimum), which usually translates into greater capital inflows, more liquidity and, over time, better financing conditions for private and real-estate projects too.
Where to check the latest rating
For the most recent sovereign rating, the fastest source is Datosmacro; for the official detail and full statement, the Ministry of Economy and Finance website (mef.gov.py). It is a figure worth reviewing at least once a year if you have capital exposed in the country.
Frequently asked questions
Brief answers to help you make an initial decision.
What is Paraguay's current country risk?
In late 2025 Paraguay reached investment grade with two of the three major international rating agencies, according to the Ministry of Economy and Finance.
How can I check Paraguay's credit rating?
For the sovereign rating, Datosmacro and the Ministry of Economy and Finance website; for local ratings of companies and banks, the Central Bank of Paraguay and the Asunción Stock Exchange.