Fitch Downgrades Bolivia to ‘B’; Outlook Revised to Stable

Fitch Ratings has downgraded Bolivia’s Long-Term Foreign Currency Issuer Default Ratings (IDR) to ‘B’ from ‘B+’ and revised the Rating Outlook to Stable from Negative. The downgrade of Bolivia’s ratings reflects deterioration in the country’s growth prospects and public finances amid acute political tensions, which are likely to complicate smooth policy adjustments to contain macroeconomic risks after upcoming elections. The Stable Outlook reflects Fitch’s view that continuing economic policy tensions and political/social risks are captured in the lower rating. Moreover, the ratings are supported by favorable government debt profile in terms of debt/GDP below the peer median, low interest/revenues, and low near-term maturities.

Source: FitchRatings