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Fitch Places Paraguay Rating on Watch

Fitch Ratings placed Paraguay on negative watch for a potential downgrade following the collapse of lender ueno and subsequent political fallout. The digital bank failure sparked a major crisis, threatening growth and government finances.

A worker carries goods across the street at Mercado 4, where business has slowed to a crawl since the collapse of digital bank Ueno, which had become the primary channel for hundreds of vendors to receive payments and transfers, in Asuncion, Paraguay, November 9, 2026.

Fitch Ratings placed Paraguay on negative watch for a sovereign downgrade following the collapse of digital lender ueno. The rating action threatens the country's BB+ sovereign status. The fallout risks destabilizing government finances and growth.