Wednesday, December 8

Why Moody’s downgraded Peru’s credit rating and what are the consequences for the country

  • Cecilia Barría
  • BBC News World

Person with a Peruvian coin in hand

Image source, Getty Images

For the first time in 20 years, Peru’s credit rating was downgraded.

Even in the worst moments of political instability, such as when the country had three presidents in a week, the international rating agencies did not punish the country with a less favorable evaluation.

This week, however, Moody’s Investors Service downgraded the country from A3 to Baa1, sending a warning signal to investors about the situation in the country governed by President Pedro Castillo.

“In a continually polarized and fractured political environment, political risk has increased and policymaking capacity has been significantly weakened,” argued Moody’s.

Leave a Reply

Your email address will not be published. Required fields are marked *