ATOME PLC (AIM:ATOM) has noted that ratings agency Moody's has updated Paraguay to investment grade with its green fertiliser potential specifically highlighted as a positive material contributor to the future economy.
Paraguay's long-term issuer and senior unsecured bond ratings RE are now investment grade Baa3 from Ba1, putting it on a par with India.
Moody's noted a track record of institutional reforms that have improved its assessment of international and governance strength. The Paraguayan economy grew by 4.7% in 2023.
Of particular relevance to the company, Moody's emphasised the upside potential for growth, including that arising from domestic green fertiliser production.
ATOME 's flagship 145MW Villeta Project in Paraguay is expected to be one of the largest renewable fertiliser production facilities in the Western Hemisphere from the start of production in 2027.
James Spalding, ATOME Paraguay president, said: "This most welcome and deserved upgrade to Paraguay's international financial standing further vindicates ATOME's strategic decision to select the country as home to its first flagship projects.
"The fact that Moody's specifically mentioned green fertiliser production as a driver of Paraguay's future financial growth underlines the importance of our projects to the country.