Standard & Poor’s Ratings Services has raised its long-term foreign currency sovereign credit rating on the Republic of Peru to ‘BB+’ from ‘BB’ and its long-term local currency sovereign credit rating to ‘BBB-‘ from ‘BB+’.

 

Standard & Poor’s also raised its short-term local currency sovereign credit rating to ‘A-3’ from ‘B’, and affirmed its ‘B’ short-term foreign currency sovereign credit rating on the republic.

 

The outlook on the ratings was revised to stable from positive. Standard & Poor’s also raised its assessment of the risk of transfer and convertibility to ‘BBB’ from ‘BBB-‘.

 

According to Standard & Poor’s credit analyst Sebastian Briozzo, the upgrade was based upon the continuing strengthening of Peru’s economic fundamentals and the expectation that these economic policies will be sustained in the future, supported by a strong commitment to a sound macroeconomic environment.

 

“This rating action brings Peru’s long-term local currency rating into investment grade,” says Briozzo. “Peru is only the fifth government rated by Standard & Poor’s whose local currency rating has transitioned into investment from speculative grade.”