LatinNews Daily - 19 October 2021

* The international credit ratings agency Fitch Ratings has downgraded Peru’s long-term foreign currency issuer default rating (IDR) to ‘BBB’ from ‘BBB+’, maintaining its outlook as ‘stable’. Fitch explained that the downgrade “reflects the steady erosion over time of Peru’s sovereign balance sheet and other key rating metrics, as a result of a series of shocks” (most notably the coronavirus [Covid-19] pandemic), which have driven Peru’s government debt ratio to a significantly higher level than in 2013, when Fitch upgraded the country to BBB+. Fitch also highlighted the current volatile political situation, noting that President Pedro Castillo’s government has advocated policies that “appear in conflict with the investment-driven and market-oriented, open economic model.” However, Fitch noted that Castillo’s 6 October cabinet reshuffle has calmed the waters, “pivoting away from more radical positions on macro policy orientation and the rule of law, and could improve relations with congress.”

End of preview - This article contains approximately 146 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial