Moody’s Investor Services is a leading provider of credit ratings, research, and risk analysis. Moody’s Latin America Desk asked the Capstone team to examine the presence of debt intolerance in Latin America and to research factors which may help explain its persistence. Some economists describe “debt intolerance” as the inability of emerging market economies to manage levels of overall debt that, under the similar circumstances, would be easily manageable for developed countries. Using leading literature and methodology on debt intolerance from Reinhart, Rogoff, and Savastano (2003), the follow up book This Time is Different by Reinhart and Rogoff (2009) and Bannister and Barrot’s IMF paper (2011), the Capstone team recreated a model that regressed credit ratings on a number of indicators of debt intolerance. The model was supplemented by three Latin America case studies, Brazil, Chile and Mexico, to better understand the most relevant factors that explain debt intolerance in this region. While analysts have researched debt intolerance, there is still much debate surrounding this phenomenon.