Moody’s Investors Service has upgraded the Government of Peru foreign- and local-currency long-term bond ratings to Baa2 from Baa3. The outlook remains positive.
The upgrade reflects Peru’s reduced susceptibility to political event risk, continuing robust economic growth and sound fiscal performance, sustained improvement of government debt metrics, and lower exposure to foreign currency denominated debt.
While Peru’s new president, Ollanta Humala, has sought to increase the government’s focus on social inclusion, he has demonstrated his commitment in the year since he took office to maintaining prudent fiscal and macroeconomic policies and to supporting the continued development of the mining industry, contrary to fears that his policies would lead to fiscal slippage and that he would adopt a more interventionist approach to the economy.
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