A combination of a series of negative shocks, which we view as temporary, and resulting lower business confidence has led to a deceleration in economic growth for Peru in 2014 to an estimated--still high--4.0%. Peru's current mix of expansionary fiscal and monetary policies is working to moderate the ongoing slowdown, while large-scale investment projects will likely increase GDP growth to 5%-6% between 2015 and 2017. We are affirming our 'BBB+' foreign currency and our 'A-' local currency long-term sovereign credit ratings on the Republic of Peru. The stable outlook reflects our expectation that investment in the infrastructure and mining sectors will continue at a steady, high pace through the 2016 national elections, supporting economic growth and limiting risk. On Aug.