S&P Raises Peru Rating

Ratings agency Standard & Poor’s has raised its long-term foreign currency sovereign credit rating on Peru to BB+ from BB and its long-term local currency sovereign credit rating to BBB- from BB+. The outlook on the ratings was revised to stable from positive. S&P said the ratings action, which brings Peru’s long-term local currency rating into investment grade, reflected the country’s: “Greater signs of political stability, combined with a strong economic performance”. The ratings agency noted that “The combination of a favorable international environment and sound implementation of economic policies has led to a substantial reduction in the government’s main historic credit risk, in particular its fiscal and external vulnerabilities,” and pointed to the 20-year, fixed-rate sol-denominated bonds issued by the sovereign as a reflection of the stable inflationary environment in Peru.