Economy and Finance Minister Maria Antonieta Alva has highlighted that
confirmed Peru's rating at 'BBB+' for debt in foreign currency and at 'A-' for debt in domestic currency —both with a stable outlook.
According to Fitch, the most notable Peruvian strengths include inflation lower than the median for 'BBB' countries; a lower fiscal deficit; lower total debt and net debt, both with respect to GDP; as well as a liquidity ratio higher than the median of countries with an 'A' rating.
These strengths balance Peru's vulnerabilities to high dependency on export commodities, financial dollarization, and low government revenue base; as well as per capita income and governance indicators lower than the median of countries with a 'BBB' rating.
The credit rating agency said the new and more gradual step for reducing the government's fiscal deficit for 2021-2024 will not weaken the country's balance sheet. Likewise, it expects that —by 2021-2022— public debt will remain below the 30% debt limit, thanks to the prioritization by the Government of the use of its treasury resources to finance most of its gross financial needs in 2020 and 2021.