Fitch Moves Bolivia into Double-B Territory

Fitch has raised Bolivia’s credit rating to BB minus from B+, it says, giving the potential international bond issuer its third of three double-B ratings. “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 says. Increased investment should also continue to support growth. These strengths are offset by concerns including a high commodity dependence, regulatory uncertainty, nationalization risks and social conflicts. The outlook is stable. Bolivia hired Bank of America Merrill Lynch and Goldman Sachs earlier this year to manage an international bond sale. The sovereign was targeting a $500m 10-year sale in June or July, but opted instead to wait. It is heard considering another attempt before the end of the year.