Fitch views Peru actions positively

Fitch Ratings said it views actions recently taken by the government of Peru to manage its liabilities as a positive step in maintaining the sovereign's credit fundamentals.

On Thursday, the government announced the preliminary results of a debt exchange and tender offer that reopened its 2033 global bonds in exchange for shorter dated global and euro bonds. Based on this information, the government will reduce medium-term amortizations by about $1.8 billion. There will also be a slight debt reduction of $100 million in nominal terms.

Fitch said that in addition to liability management, a resumption of Peru's robust growth trajectory should contribute to further improvement of the sovereign's fiscal and external indicators, its traditional credit strengths relative to BBB range peers.

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