S&P upgrades Peru

Standard & Poor's said it raised its long-term sovereign foreign currency rating on the Republic of Peru to BBB+ from BBB and its long-term sovereign local currency rating to A- from BBB+.

The outlook is stable.

S&P also affirmed its A-2 short-term ratings on Peru. At the same time, the agency raised the transfer and convertibility assessment for Peru to A from A-.

"We raised our long-term foreign and local currency ratings because Peru has reduced its vulnerability to external shocks and enhanced its capacity for stable long-term GDP growth," said S&P credit analyst Richard Francis in a news release.

"Specifically, Peru's high investment rate - more than 27% of GDP - should keep the sovereign's per capita GDP growth above 4% per year throughout the forecast horizon, significantly higher than the average trend growth rate of most other countries that are at a similar stage of development."

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