Fitch to rate Cofide notes BBB+

Fitch Ratings said it expects to rate Corporacion Financiera de Desarrollo SA’s (Cofide) upcoming $300 million notes BBB+(exp).

The notes will mature in 2019 and interest payments will be made semi-annually. The notes will carry a fixed interest rate to be determined at closing.

Cofide has a long-term foreign currency issuer default rating of BBB+, driven by the potential support that Cofide would receive from its majority owner, the Republic of Peru, should it be required.

Given Cofide's key role in implementing economic development policy, the government has, in Fitch's opinion, a vested interest in supporting Cofide. Peru's ability to support Cofide is reflected in its sovereign rating (BBB+/stable outlook). Fitch expects to rate the notes at BBB+, at the same level as Cofide's issuer default rating.

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