S&P: Bolivia outlook now stable

Standard & Poor's said it revised its outlook on the Republic of Bolivia to stable from negative and affirmed its B- long-term and C short-term credit ratings on the sovereign.

"The results the government obtained in the referendum and the peaceful and orderly nature of the voting process open an opportunity for the government to regain political momentum to move ahead with two politically sensitive issues," said S&P credit analyst Sebastian Briozzo. "These are the approval of a new hydrocarbon law that establishes a workable tax structure for the sector and a final decision on the port through which the country will export natural gas to North America."

However, S&P said the still low B- rating reflects the significant challenges the administration faces in the highly uncertain environment, especially given the lack of explicit support from the traditional parties in the Bolivian Congress.

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