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LatinNews Regional Monitor: Andean Group - 29 March 2019

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In brief: Peru

* International credit ratings agency Fitch Ratings has affirmed Peru's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BBB+' with a 'stable' outlook. A Fitch press release notes the rating reflects Peru’s “strong public and external balance sheets and its credible and consistent macro policies, which have entrenched macroeconomic and financial stability. These strengths balance vulnerabilities from high commodity dependence, financial dollarisation, and a low government revenue base, as well as lower income per capita and governance indicators (including government effectiveness) than the current 'BBB' median.” According to the Fitch report, “a cyclical recovery of copper investment, supported by infrastructure projects and firmer private consumption, drove Peru's 4% real GDP growth in 2018. Fitch expects copper projects and progress on a handful of airport, metro, and port infrastructure investments to underpin average annual growth of 3.7% in 2019-2020”.