Moody's Ratings highlights Peru's conservative debt management, the strength of key sectors such as mining and services, and the growth of local financing, which act as protective shields against institutional instability.
In its most recent outlook for the coming year in Latin America and the Caribbean, Moody's Ratings casts a calm light on a regional landscape marked by instability.
While headlines rightly focus on political polarization and currency fluctuations, the analysis reveals a critical and often underestimated asset in Peru's case: the projected credit strength of non-financial companies through 2026 remains strong and stable.
Far from being a random phenomenon, this strength is the direct outcome of historically conservative and disciplined corporate management, notes an article published in the Official Gazette El Peruano on Monday.
In an environment where domestic political risk is a constant variable, Peruvian corporations have learned to build robust financial walls.
The projected stable rating rests on solid foundations, highlighting prudent debt management, adequate liquidity levels, and, essentially, operational resilience in key sectors.
Mining, telecommunications, and the utilities sector serve as true pillars.
These sectors, often with diversified revenues or anchored to essential demand, have maintained their ability to generate free cash flow even in the face of domestic shocks.
In the region
Complementing this, Peru's local financing market is growing at levels above the regional average, expanding options for debt issuers and reducing dependence on volatile international markets.
According to Moody's Ratings, this ability to defer non-essential investments or renegotiate terms without incurring significant financial stress demonstrates the maturity of Peru's corporate muscle. Essentially, this strength is not just a rating; it is a defense mechanism that partially shields the real economy from congressional volatility and ministerial fluctuations.
Making the case for strength is crucial because it is the silent engine of macroeconomic stability. A corporate base with robust credit facilitates access to international financing on better terms, lowers the cost of capital, and promotes long-term investment.
If key companies can secure financing efficiently, they continue operating, maintaining employment and contributing to gross domestic product (GDP), even when public investment falters or political confidence erodes. This creates an indispensable buffer for Peru.
However, this stable rating is a snapshot of the present that calls for action for the future.
Moody's Ratings' evaluation is an endorsement of financial discipline, not a blank check.
The credit resilience of companies intrinsically depends on the State ensuring a predictable regulatory framework and responsible fiscal discipline.
Structural reforms
Corporate stability offers political and business leaders a unique window of opportunity to address long-postponed structural reforms.
It is imperative that this credit advantage be maximized through the implementation of policies that strengthen the rule of law and combat regulatory leniency, which ultimately ends up undermining confidence.
Moody's positive rating should not be a reason for complacency, but a powerful call to responsibility: maintaining this credit strength through 2026 and beyond requires unwavering synergy between corporate prudence and the government's long-term vision.
Data
-Moody's Ratings projects that GDP growth in Latin America will remain moderate in 2026, putting pressure on corporate revenue streams and limiting widespread credit improvements.
-Despite declines in some countries, inflation in the region remains structurally high compared to historic averages, affecting companies' operating costs.
-Polarization remains a key credit risk, as it hinders investment and the implementation of necessary fiscal reforms in several Latin American countries.