S&P lowers Bolivia

S&P said it lowered Bolivia’s sovereign credit ratings to CCC+ from B-.

“The downgrade reflects a more fragile external profile that, in our view, has weakened Bolivia's capacity to meet its debt service commitments. Higher current account deficits, limited liquid foreign exchange reserves, and lack of access to external capital markets have worsened the government's creditworthiness. Political stalemate, which has impeded the government's ability to secure timely access to official external funding, has exacerbated the weakening economic conditions. Political divisions, including within the governing political party, have delayed Congressional approval of external borrowing. Moreover, lack of transparency on international reserves data increases uncertainty,” S&P said in a statement.

However, the agency noted, “These risks are partly mitigated by relatively low debt service requirements on the sovereign's commercial debt in the next year.”

The outlook remains negative.

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