Persistent political deadlock in Peru is undermining efforts to maintain robust investor confidence and constraining growth prospects. Pension withdrawals and reliance on external funding have led to a more vulnerable debt composition. We lowered our long-term foreign currency sovereign credit rating on Peru to 'BBB' from 'BBB+'. The stable outlook incorporates our expectation of continued fiscal adjustment that maintains the net general government debt burden below 30% of GDP over the next two to three years. On March 18, 2022, S&P Global Ratings lowered its long-term foreign currency sovereign credit rating on Peru to 'BBB' from 'BBB+' and its long-term local currency rating to 'BBB+' from 'A-'. The outlook on our long-term ratings is stable. At the same time, we
