Fitch upgrades Bolivia

Fitch Ratings said it upgraded Bolivia's long-term foreign-currency issuer default rating to BB- from B+, long-term local-currency issuer default rating to BB- from B+ and country ceiling to BB- from B+, and affirmed short-term foreign-currency issuer default rating at B.

The outlook is stable.

Bolivia's upgrade reflects the country's strengthened external buffers, improved sovereign debt profile and greater diversification of financing sources, which provide ample flexibility to cope with commodity cycles and adverse domestic and external shocks, the agency said.

In addition, increasing public investment levels could support growth momentum over the forecast period, the agency noted.

Bolivia's ratings incorporate its moderate inflation record, declining dollarization, healthy banking system and stable currency regime, Fitch said.

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