Andina

Moody's maintains Peru's A3 credit rating, stable outlook

Moody’s

Moody’s

18:09 | New York (U.S.), Mar. 22.

Moody's Investors Service on Thursday announced they will maintain Peru's credit rating on A3, as well as its stable outlook, within a context in which continuity in the orientation of the Government's policies is expected.

"For the time being, we are maintaining our baseline forecasts for 2018-19, and we do not anticipate changes to Peru's A3 rating and stable outlook," Moody's Sovereign Risk Group Vice-President Jaime Reusche said.

Projected growth

Furthermore, he informed Moody's will maintain Peru's growth forecast at 3.5% for 2018 and 2019.

"This outcome signals policy continuity. We do not expect a material deviation from the Government's current policy stance on macroeconomic management," Reusche noted.

The fact that First Vice-President Martin Vizcarra will take over the presidential office should reduce the political uncertainty that could have come about if early elections had been called, he underlined.

Infrastructure projects

For his part, Moody's Vice President and Senior Analyst Adrian Garza considered that Peru's infrastructure project pipeline will likely face further delays in the short run as a result of President Pedro Pablo Kuczynski's resignation

"We expect however that infrastructure investment, including Public Private Partnerships (PPP), will continue to be a top priority for the Government," he expressed.

Despite the recent challenges, infrastructure investment will be underpinned by Peru's strong track record and institutional framework, Garza concluded.

(END) MMG/JJN/JAA/MVB


Published: 3/22/2018