Reuters
Global ratings agency Moody's downgraded Bolivia's rating to 'Caa3' from 'Caa1' on Friday, citing ongoing governance challenges and heightened domestic political risk which have taken external liquidity pressures to critical levels. "Recent developments have increased the risk of a disorderly balance of payments adjustment and of Bolivia not having sufficient hard currency to ensure full and timely repayment of its external debt obligations and imports," Moody's said in a statement. Moody's also said that it expects significant credit challenges to remain, including very low foreign-exchange reserve levels, shrinking production levels in the hydrocarbon sector, and elevated domestic political risk.