The ratings on the Republic of Peru reflect the country's track record of pragmatic and predictable policies and some progress on structural reforms over the past two decades through various political transitions. This includes our expectation of broad continuity and pragmatism in macroeconomic policies based on signals from the new Pedro Pablo Kuczynski Administration that took office July 28. 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 outlook remains stable, based on our assumption that Peru's institutional framework, track record of pragmatism that reflects political consensus on macroeconomic policy, and the interaction between the new Administration and Congress will underpin moderate fiscal and external
