Fitch Ratings downgrades Peru’s outlook to negative from stable

perspective sovereign rating Rating agency Fitch Ratings downgraded del Peru’s rating from stable to negative.

The agency has maintained its long-term foreign currency default rating at ‘BBB’, which is the bottom of the rating. investment grade.

As they point out, the deterioration of political stability and the effectiveness of the government has threatened the country’s rating.

“Fitch expects that the weakening of Peru’s political governance institutions will be difficult to reverse during Fitch’s forecast period to the end of 2024, and that weaker governance will pose greater downside risks to investments and economic growth than Fitch expected earlier this year,” a recent report said.

The rating agency warns that if the deterioration in Peru’s economic and investment outlook persists over the 2023-2024 period, it could affect the country’s macroeconomic and fiscal trajectory.

It is worth noting that Fitch Ratings recently cut its growth forecast GDP countries from 2.5% to 2.3%.

“Political instability is taking a toll on Peru’s already weak economic growth prospects as social conflict disrupts mining operations and high employee turnover slows public investment this year,” Fitch said.