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Peru Affirmed at BBB by Fitch, Outlook Negative

PERU
  • Fitch Ratings has affirmed Peru's Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) at 'BBB' with a Negative Outlook.
    • "Downside credit risks to Peru's ratings remain elevated amid weakening of governance, political stability, and growth prospects."
  • In Fitch's opinion, deep-rooted governability challenges and continued heightened political uncertainties will continue impeding policy and reform initiatives and undermine economic growth prospects.
  • Fitch believes that economic disruption from political dysfunction and social discontent is becoming more evident and will be difficult to reverse over our forecast period to end-2024, potentially impacting the sovereign's macro and fiscal trajectory relative to 'BBB' peers.

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