Moody's may upgrade Peru

Moody's Investors Service said it placed Peru's Ba3 foreign-currency bond rating, Ba2 foreign-currency country ceiling for bonds and B1 ceiling for foreign-currency bank deposits on review for possible upgrade.

The agency said the review will examine the extent to which reduced external credit vulnerabilities and the presence of lower external debt indicators have led to a sustained improvement in Peru's relative credit standing, particularly under medium-term scenarios that incorporate less favorable international economic and financial conditions.

"Peru's external credit indicators have improved significantly, as evidenced by a continuous decline in external debt ratios, a strengthened international reserve position and robust export growth," Moody's vice president Mauro Leos said in an agency rating.

The review will also evaluate the government's ability to manage adverse external shocks to public finances and the external accounts, as well as those resulting from socio-political constraints present in Peru, the agency said, adding that risks from a less benign international environment could stem from a sustained reduction in commodity prices, a deceleration in world economic growth and increased financial volatility.

© 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.