Moody’s Investors Service has been tracking the changing dynamics that affect the fiscal sustainability of Latin America and the Caribbean (LAC) countries. In the midst of a far-reaching demographic transformation, Moody’s Investors Service asked the Capstone team to provide an analytical framework that can help gauge the impacts of evolving demographics on LAC countries’ sovereign risk. The project examined the ramifications of changing demographics of the LAC countries with a special focus on their pension systems. Through the three-step analytical framework, the report provided a universal risk assessment methodology that captured the influences rendered by key indicators, with extensive studies on four representative countries (Brazil, Chile, Colombia, and Uruguay) as a complementary component to address country-specific varieties. It thus constructed a replicable model for Moody’s Investors Service to conduct further risk assessment on a wider range of regions.