Moody’s Lifts Bolivia

Bolivia has seen its bond rating upgraded to Ba3 from B1 by Moody’s, which cites economic growth and increasing international reserves, as well as improvement in debt metrics. Its rating outlook has been changed to stable from positive, reflecting challenges in accessing the capital markets and history of policy unpredictability, among other factors. Last month, S&P raised Bolivia’s sovereign credit rating to BB minus from B+, giving the country a stable outlook, and citing Bolivia’s improvement in the government’s debt burden coupled with the country’s strengthened external indicators. The moves come as the sovereign is planning to issue $500m in bonds in the international market this year, in what would be a return after nearly a century. It has hired Bank of America Merrill Lynch and Goldman Sachs to manage a deal, initially planned for July, though unstable market conditions are forcing all potential bond issuers to reconsider.