Moody’s reviews Bolivia for trim

Moody's Investors Service said it placed the Ba3 local and foreign currency issuer and senior unsecured debt ratings of the government of Bolivia under review for downgrade.

“The decision to place Bolivia's ratings under review for downgrade is driven by Moody's view that, following the resignation of President Evo Morales, heightened political risk has materially increased policy uncertainty and will likely lead to an economic slowdown that could exacerbate the ongoing erosion of fiscal and foreign exchange reserve buffers, potentially resulting in a materially weaker overall sovereign credit profile. While Bolivia's past history of recurrent political tensions is captured in Moody's assessment of political risk, a prolonged period of political uncertainty would undermine medium-term sovereign credit prospects,” said Moody’s in a press release.

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