Moody's Investors Service said on Tuesday it put Peru's sovereign rating on review for a possible upgrade, more than a year after Fitch Ratings and Standard & Poor's gave the Andean country investment-grade ratings. Mauro Leos, regional credit officer at Moody's, said the government's countercyclical policies have been a positive development.
"The government's enhanced policy flexibility is also evidenced by its successful steering of the economy toward a 'soft-landing' after a period of above-trend growth," he said. Peru's economy has expanded nearly 10 percent last year, but growth is expected to slow to 2 percent this year on the global downturn.
Peru last year won upgrades to 'BBB-minus' from Fitch and S&P as high prices for its commodity metals exports and surging reserves, among other policy factors, allowed the government to pay down foreign debt ahead of schedule. The higher credit ratings allow it to borrow at cheaper interest rates.