on Saturday affirmed that the agency will maintain the investment grade (rating) and outlook on Peru during the remainder of 2023, waiting to assess the evolution of social peace and economic dynamism in the coming months.
"We are going to take the rest of this year to evaluate all conditions and see how they could affect the country's medium-term structural issues, and then make a decision," Reusche told Andina news agency.
"So, in the remainder of the year, we deem making a decision on the rating and outlook as unlikely," he added.
At the beginning of 2023, Moody's had confirmed Peru's credit rating at Baa1 (investment grade) due to the soundness of its fiscal accounts.
However, it changed the outlook to negative due to social protests.
"We have (issued) a Baa1 rating, with a negative outlook. The negative outlook had a lot to do with the protests, but things have calmed down and that has helped a lot, so that we don't take negative action on the rating," he emphasized.
Fiscal deficit
Likewise, Reusche commented that the credit rating agency shows concern because Peru’s economy is finding it increasingly difficult to grow.
"However, that is not leading us to take a premature action," he underlined.
Furthermore, the Moody's officer indicated that the fiscal deficit is reaching its ceiling due to a reduction in revenue as a result of the economic slowdown.
"But we expect that, during the second half of the year, revenues will come in stronger as the economy recovers, and that should give a little more room for fiscal management," he indicated.
"We know that they (MEF officials) are very prudent in managing public finances and that they are going to try to control spending more strictly from now on, knowing that they are already hitting the deficit ceiling," he remarked.