Global credit rating agency, Fitch Ratings, has affirmed Peru's long-term foreign currency IDR at 'BBB+', with a Stable Outlook, due to its strong public finances and its capacity to sustain economic activity.
“Peru's creditworthiness is supported by its established track record of policy credibility, consistency and flexibility which has delivered strong macroeconomic and financial stability,” Fitch said in press release.
The rating agency adds Peru has strong external liquidity and manageable external financing requirements to mitigate risks from short-term international capital market volatility.
In addition, strong external and fiscal balance sheets underpin the sovereign's fiscal financing flexibility.
The sovereign balance sheet is among the strongest in the 'BBB' category supported by robust external buffers and low debt.
It is worth mentioning Peru's international reserves –at 31% of GDP last year, resulting in a liquidity ratio of 346% for 2015–provide the country with the capacity to adjust to lower commodity prices and tightening global financial conditions.
(END) JJN/JJN/RMB
Published: 3/28/2015