S&P rates Peru bond BB+

Standard & Poor's said it assigned its BB+ foreign-currency credit rating to the Republic of Peru's $1.24 billion global bond due in 2037.

Peruvian authorities also announced the reopening of the already-rated global 2016 and global 2033 bonds by an additional amount of $855 million and $95 million, respectively.

These bonds are part of a new liability operation aimed at strengthening the Peruvian government's debt profile by taking advantage of both the good performance of the local economy and the high liquidity in international capital markets, S&P said. This recent debt swap specifically reduced refinancing risk between 2011 and 2015, putting it more in line with the amortization profile for the period 2007-2010, the agency said.

The ratings reflect a comprehensive improvement in the country's economic indicators, the agency said, and favorable medium-term prospects in the context of a more stabilized political situation.

While these favorable conditions are expected to continue, S&P said, dealing with the current level of social problems in the face of declining commodity prices will remain the most significant risk to the rating going forward.

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