Growth in Peru has slowed sharply, and we expect that during 2015-2018 it will average 3.7% per year. We no longer expect Peru's gains in per capita GDP to be meaningfully above that of its peers at a similar stage of development. We also believe that policy measures and recent progress to reduce dollarization could afford the central bank more monetary and exchange rate flexibility in the context of changing global conditions. We are affirming the long-term foreign and local currency ratings on Peru at 'BBB+' and 'A-', respectively, and the short-term ratings at 'A-2'. The stable outlook reflects our view that Peru remains well placed to conduct some countercyclical policy and can manage a widening of its current account
