Moody’s lowered Bolivia rating by two notches to caa1 on Friday and placed it on review for further downgrades, citing low levels of FX reserves that could affect its ability to service debt payments and threaten macroeconomic stability. Additionally, congress failed to pass a bill that would have allowed the central bank to sell some of its gold reserves to give it a cash cushion. That worsened Bolivia’s financial situation, which has been under pressure for weeks due to a shortage of foreign currency that has prompted daily lines outside the central bank. Last week, Bolivia made a USD 22.5 mln coupon payment on its 2028 dollar bond after its debt started trading at distressed levels.