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Fin Min: Credit rating agencies confirm Peru's fiscal strength

10:44 | Lima, Feb. 29.

The three major credit rating agencies, Standard & Poor's, Fitch Ratings and Moody's Investors Service, ratified Peru's fiscal strength and resilience, Economy and Finance Minister Maria Antonieta Alva has affirmed.

Via Twitter, the minister informed of a meeting he had with these rating agencies in New York.


"I want to explain the importance of this news and how international markets see us. The rating agencies assess countries' capacity and commitment to paying its debt, based on their macroeconomic performance and on how they manage their public finances," she said.

Leadership

Alva recalled that Peru has achieved the highest credit rating, after Chile, and the lowest country risk in Latin America, which reflects the confidence of international markets in the nation's macroeconomic and fiscal strengths.

Likewise, she noted Peru is the only country in the region whose credit rating remained unchanged with outlook stable. "This is an advantage, considering that the outlook of all countries in the region has been revised to negative since 2013."

Soundness

Alva explained that the level of risk assigned by the rating agencies, plus the sound macroeconomic fundamentals and the development of an active public debt market in domestic currency have encouraged global investors to consider Peru as the new risk-free asset in the region.

According to the government official, maintaining a good credit rating is important because this attracts more investment. Besides, it allows public and private sectors to access better financing conditions.

"This promotes investment projects, which improve citizens' quality of life," she expressed.


(END) WRR/RMB

Published: 2/29/2020
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