DBRS upgrades Peru

DBRS said it upgraded the Republic of Peru's long-term foreign and local currency issuer ratings to BBB (high) from BBB and upgraded the short-term foreign and local currency issuer ratings to R-1 (low) from R-2 (high).

The trend for all ratings was revised to stable from positive.

DBRS said the upgrade reflects Peru's strong fiscal performance and high rates of growth, which led to a substantial reduction in public debt and, more recently, the accumulation of financial savings. Underpinning this improvement in the public sector balance sheet has been a prolonged period of sound macroeconomic policymaking. These strengths counter several rating constraints, which include Peru's weak institutional capacity, exposure to commodity-price volatility and infrastructure bottlenecks, the agency said.

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