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Peru one of South America's strongest economies

Staff writer |
Peru's sustained macroeconomic performance has been recognized through the upgrade to A3 of its sovereign debt by Moody's Investors Service.

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Moody's Investors Service pointed out the falling debt and reduced dependence on metal exports as one of the main reasons for its decision but also the improvement in the government's balance sheet as well as expectations for faster growth and the impact of initiatives to bolster competitiveness.

Moody's also raised the credit rating of sever

Likewise Moody's upgraded the long term local and foreign currency deposit ratings of Banco Internacional del Peru S.A.A., to Baa2 from Baa3, and raised its short term local and foreign currency deposit ratings to Prime-2 from Prime-3.

The government owned Corporacion Financiera de Desarrollo S.A. also benefited and was upgraded to Baa2 from Baa3, for the long-term local and foreign currency issuer ratings with a stable outlook.

Peru's economy will probably expand by about 5% this year before growing about 6% in 2015 and 2016, with an average 6.3% in the last decade, the fastest in South America. The country also posted a fiscal surplus last year even as economic growth slowed to 5.8% and prices for commodity exports slumped.

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