Fitch pares Peru

Fitch Ratings said it pared Peru's long-term foreign-currency issuer default rating to BBB from BBB+.

“The downgrade via the removal of the former positive notch for macro and fiscal policy credibility 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; this has accelerated since 2020 due to the pandemic-related recession and fiscal response. The government debt ratio is materially higher than in 2013 when we upgraded Peru to BBB+ and liquid fiscal buffers have been depleted, eroding the strength of Peru's government balance sheet relative to peers,” Fitch said in a press release.

The outlook is stable.

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