(Bloomberg) -- Bolivia’s credit score was cut by S&P Global Ratings as the nation’s political impasse raises uncertainty over the government’s capacity to implement timely and forceful corrective policies to reduce economic vulnerabilities. 

The company now rates Bolivia one notch lower at B, five levels below investment-grade and on par with Egypt and Costa Rica. The “persistent and sizeable” fiscal deficits have pushed government debt above 60% of gross domestic product and international reserves have fallen, according to a Tuesday statement. 

“Bolivia’s once large fiscal and external buffers have steadily deteriorated,” analysts Carolina Caballero and Omar De la Torre Ponce De Leon wrote. “Moreover, political challenges have worsened with increasing regional tensions and divisions within the ruling coalition. Political impasse raises risk of further erosion of external liquidity in a context of tight external market conditions.” 

Moody’s Investors Service rates Bolivia five levels below investment-grade at B2 with a negative outlook, while Fitch Ratings assigns it the equivalent score at B. Both S&P and Fitch have a stable outlook on the South American country. 

©2022 Bloomberg L.P.