S&P cuts Peruvian banks

S&P said it lowered its ratings on Banco de Credito del Peru, Scotiabank Peru SAA, Banco BBVA Peru, Banco Internacional del Peru S.A.A - Interbank, Corporacion Financiera de Desarrollo SA (Cofide) and Fondo Mivivienda S.A. The outlook on all entities is now stable.

The agency also affirmed the ratings on Credicorp Ltd. at BBB and Intercorp Financial Services Inc. at BBB-. The outlook on both entities remains negative.

S&P trimmed Peru’s foreign-currency sovereign rating to BBB from BBB- on Friday.

“The rating action on the financial entities follows the downgrade of the sovereign. Our ratings on Peru limit those on domestic financial institutions, because we don't consider that the entities could withstand a sovereign default scenario, given their large exposure to the country in the form of loans and securities. In addition, the deterioration in the sovereign's credit fundamentals reduces its capacity to provide extraordinary government support to the financial system and government-related financial entities if needed,” S&P said in a press release.

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