The monetary and
fiscal response of Peru to the coronavirus pandemic has been correct, Global Head of Emerging Markets Research for J.P. Morgan Luis Oganes affirmed.
"The fiscal and monetary response has been correct given the circumstances," he said during his speech at the Global Leaders Forum held by El Dorado Investments and Financial Times.
According to Oganes, even though the South American country is using its "fiscal cushions" to face this pandemic, the subsequent governments must work to strengthen the solid fiscal accounts.
In addition, he stated that Peru and Chile are the two countries in the region whose investment grade ratings are better positioned to face this pandemic, while Colombia and Mexico are "potentially vulnerable to losing their investment grade rating" in the coming years.
"I do not see any risk that Peru will lose its investment grade rating, it is about two steps above the low range," he underlined.
The JP Morgan official assured that Peru's investment grade rating of
BBB+ will remain unchanged over the next years as long as the subsequent governments act with fiscal responsibility.
(END) MDV/RMB/MVB
Published: 6/18/2020