Bolivia's Economic Outlook Worsens as Credit Agencies Issue Red Alert

La Paz, Bolivia – International credit rating agencies have issued a 'red alert' regarding Bolivia's economic stability, with Standard & Poor's being the latest to downgrade the country's long-term credit rating from 'CCC+' to 'CCC-'. This follows similar reductions by Fitch Ratings and Moody's in previous months. According to Standard & Poor's, political disputes in the current election year are expected to limit the government's capacity to address macroeconomic imbalances, including exchange rate discrepancies and inflation. Fitch Ratings and Moody's have also cited weak governance and critical international reserves as contributing factors to their downgrades. Economist Fernando Romero, President of the College of Economists of Tarija, described this scenario as 'very negative,' warning of latent risks of default and a balance of payments crisis, which could lead to political and social uncertainty. In response, the Bolivian government stated that it continues to make punctual payments on its external debt. However, Minister Marcelo Montenegro acknowledged that political issues have indeed impacted the economic situation.