The rating agency Standard & Poor’s (S&P) Global Ratings has upgraded Paraguay’s credit rating to BBB-, officially granting it Investment Grade status. This recognition adds to the rating awarded by Moody’s in 2024, confirming a consistent trajectory of macroeconomic and institutional strengthening. With the backing of two of the three leading global rating agencies, Paraguay is no longer just a “promise” and is consolidating itself as an increasingly relevant market for international capital.
The significance of this second rating lies in reinforcing the perception that the country’s stability stems from structural rather than cyclical factors. For many institutional investors—particularly international funds subject to restrictive investment mandates—the presence of at least two investment-grade ratings is a key requirement for capital allocation. In this context, Paraguay is tangibly expanding its universe of potential investors and strengthening its profile as one of the most predictable economies in Latin America.
This new positioning entails higher performance standards for developing projects and operations. The growing interest of foreign investors and international financiers demands more sophisticated contractual structures, high levels of regulatory compliance and transparency, as well as a solid understanding of the local regulatory framework and applicable international practices. Proper management of legal and regulatory risks, efficient tax structuring, and the use of capital markets instruments—including recent reforms introduced by the new Securities Market Law—are now central elements.
In this scenario, the success of an investment increasingly depends on strategic, specialized legal advice. At FERRERE, we stand alongside Paraguay in this new stage, providing comprehensive, strategic, and specialized counsel that this favorable context requires to turn opportunities into efficient and sustainable investments over time.