The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Investment-grade status makes Peru a darling

Peru’s dramatic rise from market pariah to investors’ darling was capped this year with investment-grade status awarded by Standard & Poor’s and Fitch, opening Peruvian capital markets to huge interest among institutional investors. Ironically, Alan García, the president who made Peruvian debt a no-go area in the 1980s with soaring inflation and bond defaults, oversaw the upgrades in his second term, two decades later as a free-market convert.

With low inflation, one of Latin America’s fastest economic growth rates at 9% this year and a free-trade agreement with the US, Peru hopes to develop its nascent corporate and local-currency bond markets and create the kind of secondary trading and asset-backed transactions that are rarely seen outside Brazil and Mexico in the region. "There is a whole class of investors who previously never considered entering Peru, but with investment grade that all changes," says Juan Carlos Odar, senior credit analyst at the country’s top bank, BCP.

Although open to foreign investment, Peru’s stock market and a government drive to swap dollar-denominated debt into local paper have been the most active corners of an otherwise arid capital market scene. "The capital markets are very shallow but investment grade should guarantee permanent capital flows from abroad.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.

By continuing to use & browse the site you agree to our Privacy Policy.
I agree