S&P Cuts Peru Rating as Political Turmoil Weighs on Growth

  • Foreign-currency debt rating lowered to BBB-, outlook stable
  • S&P expects mild growth recovery, narrowing of fiscal deficit
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Peru was downgraded by S&P Global Ratings as political turmoil weighs on investor sentiment, curbing the growth outlook and constraining the nation’s capacity to rebuild fiscal buffers.

S&P cut the score by one notch to BBB- on Thursday, the lowest investment-grade rating and on par with Hungary and Romania. The outlook is stable. S&P last downgraded the nation in 2022.