S&P changes Peru outlook to negative

S&P said it changed its outlook for Peru to negative from stable and affirmed the BBB long-term foreign-currency and BBB+ long-term local-currency sovereign ratings.

“The negative outlook reflects the risk to the sovereign's creditworthiness from the enduring political standstill and challenging relationship between the country's executive and legislative branches of government. Former President Pedro Castillo's recent attempt to dissolve Congress and his subsequent ouster from office is the latest development of Peru's long-standing political impasse, which threatens to weaken the government's capacity to implement timely policies to support robust private investment and economic growth,” the agency said in a press release.

The weaker outlook indicates a one-in-three chance of a downgrade following a review of Peru’s political trajectory and its potential effect on economic policy and outcomes, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.