In its latest report, issued last April, Fitch Ratings maintained the country's credit rating at “BB”, which leaves it steps away from obtaining investment grade. The report highlights that real GDP increased 4.3% in 2017, which is the highest rate in South America and above the average of similarly rated countries. Fitch's outlook is positive, projecting similar growth in 2018 and 2019 under the new government administration.

The debt-to-GDP ratio also remained lower than that of other countries with similar ratings. Thanks to compliance with the Fiscal Responsibility Law, the central government deficit at 1.4% of GDP was one of the lowest in the last two years. Likewise, the new administration's intention to reform the judicial system and to increase the efficiency of public institutions is seen as a factor that could improve indicators at the country level. In addition, some of the variables surrounding the country's credit profile could improve following an upcoming revision of GDP data upwards - as an improvement in nominal GDP would increase GDP per capita and reduce the debt-to-GDP indicator.

Fitch expects that a continuity of economic policies by the new administration - with low fiscal deficits and debt levels, improved governance indicators, as well as solid and sustained GDP growth rates with lower volatility - could improve Paraguay's credit rating.

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