Fitch rates Bolivia B-, outlook negative

Fitch Ratings said it assigned B- foreign and local currency issuer default ratings to the Republic of Bolivia after its general elections on Sunday.

The outlook is negative.

Evo Morales of the leftist party Movimiento al Socialismo won the presidential election with 51% majority, according to unofficial results, and is the first indigenous leader to win the presidency. Fitch said he faces the daunting task of addressing the demands of Bolivians for the nationalization of the energy sector, the drafting of a new constitution and the issue of more autonomy for Bolivia's regions.

Fitch said it is concerned about the politician's campaign rhetoric, which challenged the liberal economic policies followed by recent governments and the regional policies of the United States that advocate the eradication of coca cultivation, but that Morales' victory should give his government a greater degree of legitimacy than that enjoyed by recent predecessors and could lead to improvements in governability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.