Post-Carranza Peru Policy Seen Unchanged

The departure of Peruvian finance minister Luis Carranza Ugarte is not expected to affect Peru’s economic and fiscal policies, or result in a change in its economic outlook, say analysts. “The government is doing a good job managing its finances and I don’t think the new minister, whoever it might be, is going to change that,” says Carola Sandy, an analyst at Credit Suisse. Mauro Leos, a sovereign analyst at Moody’s, says historically Peru has been known for having a steady economic policy regarding changes at the ministry. “We believe that there are no signals that the economic and fiscal policy will change in Peru and that is implicitly incorporated in our rating,” adds Leos. Moody’s rates Peru Ba2, two notches below investment grade.