Two negative shocks, which we view as temporary, have hurt the Peruvian economy this year, leading the government to launch a fiscal stimulus plan and loosen its fiscal targets for the next four years. The Republic of Peru's low government debt, coupled with monetary policy credibility and an improved external profile, are key ratings strengths that provide support during this temporary policy adjustment. 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 incorporates our expectation that Peru's economy will gradually gain momentum, with a long-awaited recovery in investment after the transitory shocks fade while it continues to maintain a solid fiscal profile. On