Moody's rates Lima Ba1

Moody's Investors Service said it assigned a Ba1 first-time local-currency issuer rating to the City of Lima, Peru.

The outlook is stable.

The rating reflects Lima's diversified local economy, which generates wealth levels above the national average and supports a strong own-source revenue base, Moody's said.

The rating also takes into account Lima's uneven financial performance, driven primarily by operating pressures, leading to increasing borrowing requirements, the agency said.

These credit challenges are partially compensated by solid liquidity levels and a well-structured debt framework based on a payment trust, which offers additional security to loan and bond holders, Moody's said.

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