Bonds
Peru’s Debt Outlook Cut to Negative by S&P on Political Risk
- S&P cites uncertainty about nation’s institutional stability
- Peru’s BBB credit rating was affirmed by S&P on Monday
This article is for subscribers only.
Peru’s credit outlook was cut to negative from stable by S&P Global Ratings as a tumultuous period for the government and changes in leadership highlight the risk of political deadlock.
The move indicates one-in-three odds that the credit assessor downgrades Peru’s rating, depending on its political trajectory and risks to economic policy and growth, analysts S&P analysts Constanza Perez Aquino, Joydeep Mukherji and Sebastian Briozzo wrote in a Monday statement. S&P affirmed Peru at BBB, two notches above junk territory, in line with Panama and Uruguay.