Moody's lifts Peru

Moody's Investors Service said it upgraded the government of Peru's foreign-currency bond rating to Ba2 from Ba3 in light of a gradual convergence of the country's external debt indicators supported by a strong export performance over an extended period of time.

The foreign-currency country ceiling was upgraded to Ba1 from Ba2 and the country ceiling for bank deposits to Ba3 from B1.

The outlook is stable.

"External debt ratios have moved toward those observed in other Ba-rated countries, while the share of foreign-currency denominated government debt and the degree of financial dollarization in the Peruvian banking system have reported steady reductions," Moody's vice president Mauro Leos said in a written statement. "The rating action is also consistent with Moody's emphasis on the need to more closely align foreign- and domestic-currency bond ratings."

The government also benefits from strong export performance, a reduction in share of foreign-currency denominated government debt and liability management, the agency said.

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