Moody's lifts Lima local currency to positive

Moody's Investors Service said it changed the outlook on the Ba1 local-currency issuer rating of the City of Lima to positive from stable.

The outlook revision reflects the positive outlook assigned to Peru's Baa3 foreign- and local-currency government bond ratings, Moody's said, coupled with the moderate likelihood that the government of Peru would act to avoid a default by the city, should this event ever appear likely to occur.

The positive outlook does not reflect any improved prospects for the city's fundamental underlying credit risk, the agency said.

But it considers indirectly the improved operating environment in Peru, characterized by a favorable assessment of the country's long-term economic growth, efforts to institutionalize fiscal discipline and a commitment to preserve the fundamentals of its macroeconomic policy framework, Moody's said.

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