Moody's Investors Service Vice-President Jaime Reusche on Friday noted that Peru's credit rating remains unchanged with outlook stable, despite the increase in fiscal spending to tackle the coronavirus pandemic.
"Despite the pandemic's impact on the economy and fiscal accounts, the long history of macroeconomic stability, pro-market public policies and fiscal prudence continue to be impeccable elements in the country's credit profile and support its current credit rating," Reusche underlined.
He noted that these strengths counteract the structural weaknesses that have limited the rating for several years and create credibility among the country's economic authorities.
"While many of the structural and institutional deficiencies —including
corruption, political noise, the weakness of the Judiciary, low educational levels, and inefficient state bureaucracy— have exacerbated the economic slowdown in recent years, which led to concerns regarding the outlook on the rating, the economic authorities have always adopted measures to safeguard the country's fiscal soundness," he stated.
"Thanks to this credibility, the outlook was not changed to negative and the country's credit rating remains unchanged. This presents a contrast with most nations in the region," Reusche remarked.
"The public debt levels are increasing, the fiscal deficit is widening sharply, the economy is being severely affected, but we are confident this Government and the next one will adopt measures to return to the pre-pandemic pace and counteract this year's deterioration; otherwise, the outlook may change," he added.
(END) DOP/MDV/JJN/RMB/MVB
Publicado: 28/8/2020