LIMA, Jun 30 (.) – Moody’s said on Tuesday that it had ratified Peru’s A3 credit note for its long-term debt with a stable outlook, amid a historic fiscal effort by the South American country to reduce the impact of the coronavirus .
In a review of its ratings, Moody’s stated that the note for Peru is backed by its economic and fiscal strength, its strong growth and moderate public debt; although compensated by its weak institutions with incidence of corruption, low levels of education and large informal sector.
Peru has launched an economic stimulus equivalent to almost 17% of Gross Domestic Product (GDP) to revive its economy, which sank 40% in April and a contraction of 12.5% is expected in 2020, the worst in a year. century.
The Ministry of Economy and Finance welcomed the ratification of the rating despite the negative but temporary impact of the pandemic on the Peruvian economy, which will lead to a record increase in its fiscal deficit at the end of the year.
“These have been extreme circumstances for economies around the world, however we are one of the few countries in the region that has the necessary solvency to face this crisis and this is recognized with this ratification of the rating,” said Minister María Antonieta Alva in a statement.
Moody’s also highlighted Peru’s low risk of refinancing, after placing in April – in full pandemic – bonds for 3,000 million dollars, adding a record demand of almost 10 times the offer.
Coronavirus cases rose to 285,213 in Peru until Tuesday, which overtook Spain and ranks sixth in contagions globally and the second highest outbreak in Latin America after Brazil, according to a . count. Meanwhile, the number of deceased reached 9,677, according to official data.
(Report by Marco Aquino, Edited in Spanish by Manuel Farías)