The ratings on the Republic of Peru reflect Standard&Poor's Ratings Services' expectation that fiscal and monetary policy continuity under President Ollanta Humala's government will support stronger economic policy flexibility and growth. The Humala administration has emphasized social inclusion and has laid out plans to increase social and infrastructure spending as well as boost public-sector wages. However, the government has also signaled its intent to implement these priorities gradually and within the limits of a prudent fiscal approach by tying the expenditures to increased revenues, partly from the mining sector. Therefore, assuming a fairly steady currency, net general government debt to GDP likely will continue to gradually decline over the next three years. Furthermore, the government's commitment to economic
