The international agency Fitch Ratings has reaffirmed Peru's credit rating for its debt in domestic and foreign currency at 'BBB,' which is supported by its moderate public debt, strong external liquidity, as well as its record of macroeconomic stability and fiscal discipline.
In MEF's opinion, this reflects the strong fiscal commitment shown with the reestablishment of medium-term fiscal rules (Law No. 31541) of 1.0% of GDP and 30.0% of GDP, respectively.
Likewise, Fitch maintained a negative rating outlook as governance challenges remain and political uncertainty remains elevated, which would affect policy implementation, posing risks of lower economic growth.
Furthermore, it indicated that the dysfunctional political situation and social discontent have become more evident and will be difficult to reverse in the forecast period, until the end of 2024.
External liquidity
Similarly, it mentioned that FDI flows have been resilient despite political uncertainty.
Fitch Ratings pointed out that Peru can improve its credit rating if high growth levels are achieved in the coming years, higher than those projected by the agency, driven by an increase in private investment and if political stagnation and uncertainty are reduced to improve governance —also if prudent fiscal policy frameworks are maintained that lead to a lasting stabilization of Government debt/GDP ratio over time.
Lastly, the Government of Peru will continue with its commitment to prioritize macroeconomic and financial stability, fiscal discipline, as well as institutional strengthening to promote sustained economic growth, close the country's structural gaps, boost competitiveness and productivity, plus improve the population's well-being.