Moody’s changed Peru’s A3 rating outlook to negative after weakening institutions

Moody’s changed the outlook on Peru’s long-term foreign and local currency A3 issuer ratings to negative from stable. This change reflects Moody’s view that an increasingly polarised and fractured political environment has been undermining the effectiveness of the country’s policymaking, leading to a progressive deterioration in Peru’s institutional strength. If sustained, this erosion will undermine economic resilience and continue to weigh on business sentiment and negatively affect investment.

Source: RPP