Overview
- Moody’s reaffirmed Peru’s long‑term sovereign rating at Baa1 on Tuesday, September 22, saying low public debt and fiscal cushions support the rating.
- The agency said improved political stability since June should make policy more predictable but that this stability has not yet produced stronger institutions or a sustained improvement in governance.
- Moody’s identified the main threats to the rating as permanent increases in current public spending and failures to execute a large pipeline of mining and infrastructure projects because of delays, permit problems and social conflict.
- Peru’s finance minister held investor and ratings meetings in New York to present reforms aimed at boosting investment, improving tax collection and strengthening public‑investment execution to shore up market confidence.
- Moody’s projects public debt near 30% of GDP and growth of about 3%–3.5% for 2026–2027, and it views a possible El Niño as a temporary shock manageable with existing reserves while U.S. rate moves could raise dollar funding costs for Peruvian firms.