Fitch Announces Formal Launch of New Support Ratings for Banks

...Stable Outlook : Peru's ratings reflect its strong public and external balance sheets and its longstanding credible and consistent macroeconomic policies, w hich have entrenched economic and financial stability. These strengths balance vulnerabilities from high commodity dependence, financial dollarization and a low government revenue base, as w ell as low er income per capita and governance indicators than the present `BBB' median. Low er Econom ic Grow th Outlook: We revised dow n our economic grow th forecast to 2.5% for 2019 (from 3.5% in June) and around 3% (from 3.7%) for 2020-2021. Global grow th and trade uncertainty w ill w eigh on Peru's exports, es pecially copper, and renew ed political confrontation betw een the president and congress w eigh on business investment. Large copper projects continue to anchor grow th, and the supply-side shocks of 1H19 have dissipated. Trend Grow th Converged w ith Median: Peru's five-year average real GDP grow th at 3.3% is now slightly below...

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