Living in Peru : your everyday companion

Living in Peru
Israel J. Ruiz

Moody's Investors Service, one of the world's leading credit rating agencies, raised Peru's foreign-currency bond rating Tuesday, bringing the Andean country one step closer to investment grade.

While other leading credit rating agencies such as Fitch Rating and Standard & Poor's have upgraded Peru to investment grade, Moody's announced it had raised its outlook from Ba2 to Ba1.

According to Moody's investment rating system, the Andean nation is now one step below investment grade.

Quoting Moody's representatives, Dow Jones said the investors service had explained the decision was made "in light of significant and sustained reductions in foreign-currency related credit vulnerabilities".

Dow Jones also reported that Moody's Vice President-Senior Credit Officer Mauro Leos said in a statement that the upgrade "was prompted by steady improvement in Peru's sovereign credit profile driven by a continued and accelerated strengthening in the balance sheet of the government and the local banks".

While Leos stated that the country still faced significant socio-economic challenges, it was noted that Peru was on the verge of becoming a net external creditor nation, reported Dow Jones.