MEF on Moody’s: “Forecast change will not affect investments”

Minister Economics and financeAlex Contreras ruled out that Moody’s change in risk rating outlook would affect private investment in the country.

A few days ago, the risk assessment agency Moody’s has changed the outlook for Peru’s risk rating (Baa1), both in national and foreign currency in the long term, stable to negative due to social conflicts that threaten management and economic power.

“Moody’s has done this: ‘I’m keeping your rating high because you’re still financially sound, but I’m concerned about what’s going on so I’m going to keep rating you.’ This will not affect the terms of investment, it does not concern us, but yes, we must take action, what can affect us is a rating downgrade”

However, this should be avoided interest rate risk decrease, and for this, any factor that generates uncertainty for investors, such as social conflict and early election.

“We are going to continue to coordinate with the rest of the rating agencies to let them know that there is a recovery plan, that there is an exit route, and signaling that the election date is set will be key to maintaining stability. .,” he pointed out.

Alex Contreras also clarified that he met with a Moody’s representative in London to explain the country’s current situation as a result of the coup d’état and reassure her that Peru is “still economically resilient”.

“In a context like the current one, Peru remains strong and resilient, so the fact that new elections are called should encourage us to act, to try to make institutional improvements so that we don’t get downgraded in the next review,” he said.

The risk rating is necessary because it evaluates the government’s ability to meet contractual obligations.