Moody's Investors Service has announced it maintains Peru's credit rating on A3, as well as its stable outlook.
"Solid economic fundamentals, an absence of major macroeconomic imbalances and strong economic institutions have provided a stable environment to
foster economic growth," the credit rating agency stressed.
Underpinned by low and affordable government debt and moderate fiscal savings, the Peruvian Government's strong balance sheet and solid
fiscal policy credibility are key credit strengths, it added.
According to the agency, the sovereign's main credit challenges relate to its voluble political environment.
Within this framework,
corruption, political infighting, a weak judicial system, low levels of education, and an inefficient bureaucracy —primarily at the local and regional government level— are the greatest challenges it faces.
Economic strength
Furthermore, Moody's set Peru's final score for economic strength at "Moderate (+)," in line with its indicative score.
In this sense, a strong track record of economic growth underpins the score.
Based on its projections, real growth will average 3.8% from 2013 to 2022.