Moody’s Lifts Peru

Peru has been upgraded to Baa2 from Baa3 by Moody’s, the agency says. Moody’s cites 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. “Peru’s long-standing commitment to macroeconomic stability, market-friendly policies, and sound fiscal management has delivered it a decade of strong private investment, robust growth and steadily declining debt ratios. The country’s recent economic performance and government debt ratios are both among the best in the Baa-rating category. This has provided the government the fiscal flexibility to implement countercyclical policies, which helped the country to avoid a recession in 2009,” the agency says. Moody’s expects to the positive trends will continue for the foreseeable future, if at somewhat more moderate pace. The outlook is positive.