S&P trims Peru rating

S&P said it lowered Peru’s long-term foreign-currency sovereign credit rating to BBB- from BBB.

“We expect Peru's complex political landscape will persist in the run-up to the next presidential and Congressional elections. This in turn limits the government's capacity to implement more timely policies to boost the investment and economic growth outlook, in our view. Lingering political uncertainties pose an opportunity cost to growth despite favorable copper prices.

“Moderate growth, especially in per capita terms, will limit improvement in Peru's socioeconomic conditions. Peru already has lower income levels than many regional and similarly rated peers. Subdued growth also limits the resiliency to weather new shocks,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.