S&P Global cuts Peru’s outlook to negative on heightened political risk

(Reuters) – Global ratings agency S&P Global cut Peru’s outlook to negative from stable, citing risks to the sovereign’s credit worthiness from a political standstill and challenging relationship between the country’s executive and legislative branches of government.

S&P said the way Peru’s most recent change in power occurred reflects heightened political deadlock, and it increases risks ahead.

The agency affirmed its ‘BBB’ long-term foreign currency and ‘BBB+’ long-term local currency sovereign credit ratings.

(Reporting by Shreyaa Narayanan in Bengaluru)