Bulletin: Credit FAQ: Can Peru's New Administration Lead A Return To Stability?

Pedro Castillo became confirmed as the new president of Peru on July 19, following a neck-and-neck second-round election against Keiko Fujimori (50.1% versus 49.9%) and after a month and a half of deliberations by electoral authorities on challenged votes. The new administration takes office today. S&P Global Ratings believes that following the election, the country's sharpened political and social divisions pose significant challenges for the incoming administration. Moreover, the COVID-19 pandemic has still not receded in the country. Our ratings on Peru (foreign currency: BBB+/Stable/A-2; local currency: A-/Stable/A-2) are based on our expectations of modest net general government debt, moderate monetary and external flexibility (including solid international reserves and a credible policy of targeting inflation), and continued good access to

...Pedro Castillo became confirmed as the new president of Peru on July 19, following a neck-and-neck second-round election against Keiko Fujimori (50.1% versus 49.9%) and after a month and a half of deliberations by electoral authorities on challenged votes. The new administration takes office today. S&P Global Ratings believes that following the election, the country's sharpened political and social divisions pose significant challenges for the incoming administration. Moreover, the COVID-19 pandemic has still not receded in the country. Our ratings on Peru (foreign currency: ###+/Stable/A-2; local currency: A-/Stable/A-2) are based on our expectations of modest net general government debt, moderate monetary and external flexibility (including solid international reserves and a credible policy of targeting inflation), and continued good access to funding sources. Such strengths mitigate the macroeconomic downdrafts from the COVID-19 pandemic and from recent political uncertainty. Our base...

Bulletin