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12/17/09

Baa Baa Baa: Moody's grants investment grade to Peru


The Trifecta is complete. Last year S&P and Fitch slapped 'investment grade' on Peru and both of those must have been sweating the call when the stock market sunk under 7,000 during the crisis and the "we're going to grow 6% and we won't be affected by the financial crisis" ridiculousness of its government was shown to be the big fat lie that it clearly was.

But now Moody's, always the toughest nut to crack, has joined in, raising its rating to the aptly named "Baa Baa Baa" (well, really it's 'Baa3'....geddit?). The upshot of this will be more money can now enter the country for investment purposes if it wants to. Let's not worry about the new capital gains tax on stock market profits though, eh?

So congrats of sorts to Peru, but the truism of ratings agencies calling tops in stock markets shouldn't be forgotten, either.