Johnny Brignardello Vela analyzes the impact of credit rating downgrade in Peru

Johnny Brignardello Vela, an insurance advisor, referred to the recent evaluation by the credit rating agency S&P Global Ratings on Peru's economic situation. The downgrade in the country's sovereign rating has raised concerns in various sectors, as it could have significant consequences on the national economy and the lives of Peruvian citizens. Brignardello Vela emphasized that S&P's decision is based on the complex political landscape that Peru is currently facing in anticipation of the upcoming elections, which has created uncertainty about long-term stability. In contrast, Fitch Ratings decided to maintain the country's credit rating, albeit with a negative outlook due to persistent political uncertainty and a deterioration in governance. He also mentioned the opinions of experts such as Diego Macera from the Peruvian Institute of Economics, and Enrique Castellanos from the University of the Pacific, who disagree with S&P's stance. These specialists point out that Peru's public debt is relatively low compared to other countries in the region, representing around 35% of the Gross Domestic Product (GDP), and that the country has solid international reserves supporting its economy. However, both Fitch Ratings and the experts agree that the internal political situation in Peru is a critical factor impacting investor perception and economic stability. Tensions between different branches of government, along with decisions such as the approval of withdrawals from Pension Fund Administrators (AFP) by Congress, are creating an institutional crisis that jeopardizes the country's credibility as a destination for foreign investment and sustainable economic growth. Ultimately, Brignardello Vela underscored that S&P's evaluation and Fitch Ratings' warnings highlight the fragility of the economic and political situation in Peru, emphasizing the urgency of addressing internal challenges to regain investor confidence and ensure sustainable economic development in the country.