Fitch Ratings lifted Bolivia’s sovereign credit rating on Tuesday, pointing to a shrinking probability of default. The agency credited the new government’s success in securing fresh financing and trimming expenditures. Analysts see the upgrade as a signal that fiscal discipline is beginning to outweigh the political uncertainty that plagued the country last year.

Bolivia’s rating had slipped to junk status after years of fiscal deficits and a 2019 political crisis that stalled debt‑repayments. By unlocking new funding sources and curbing spending, the administration reduced the debt‑service burden that once alarmed investors. Fitch’s move aligns the country with peers such as Peru, which have recently enjoyed similar upgrades.

Investors will now monitor whether Bolivia can sustain its fiscal tightening while attracting private‑sector capital. Fitch expects the rating to remain stable for the near term, but any reversal in spending discipline could prompt a downgrade. Market participants also watch upcoming IMF discussions for additional policy guidance.