Six Peruvian Financial Institutions Downgraded Following Same Action On Peru; Outlooks Stable

On April 25, S&P Global Ratings lowered its long-term sovereign ratings on Peru--foreign currency to 'BBB-' from 'BBB' and local currency to 'BBB' from 'BBB+'--reflecting that a fragmented Congress and limited political capital of the administration weigh on private-sector investment sentiment and pose an opportunity cost to growth. We downgraded six financial institutions operating in the country following the action on the sovereign. We rarely rate financial institutions higher than the sovereign where they operate because we consider it unlikely that the institutions would remain unaffected by developments in domestic economies. The outlooks on these companies are now stable, mirroring the outlook on the sovereign, which incorporates our expectation of a moderate recovery in real GDP, while net general government

...- On April 25, S&P Global Ratings lowered its long-term sovereign ratings on Peru--foreign currency to '###-' from '###' and local currency to '###' from '###+'--reflecting that a fragmented Congress and limited political capital of the administration weigh on private-sector investment sentiment and pose an opportunity cost to growth. - We downgraded six financial institutions operating in the country following the action on the sovereign. We rarely rate financial institutions higher than the sovereign where they operate because we consider it unlikely that the institutions would remain unaffected by developments in domestic economies. - The outlooks on these companies are now stable, mirroring the outlook on the sovereign, which incorporates our expectation of a moderate recovery in real GDP, while net general government debt continues to rise but remains below 30% of GDP over 2024-2027. - At the same time, we affirmed our ratings on two entities that we already rate at the same level...

Ratings Action