Fitch acts on Peruvian financial issuers

Fitch Ratings said it took selected actions on Peruvian financial institutions following Peru's sovereign downgrade to BBB from BBB+. The agency had also revised the sovereign outlook to stable.

Fitch said it lowered its ratings on Corporacion Financiera de Desarrollo SA (Cofide) and Fondo Mivivienda SA (FMV) to BBB from BBB+, mirroring the downgrade on the Peruvian sovereign IDRs. Peru is the majority owner of both. The outlooks of these entities were revised to stable, in line with that of Peru. The agency also cut Cofide’s subordinated bonds to BB+ from BBB-.

The downgrade of Banco de Credito del Peru SA to BBB from BBB+ also reflects the recent downgrade of Peru's ratings, as its ratings are constrained by the sovereign's ratings based on its current intrinsic credit profile, Fitch said. The agency also trimmed the bank’s subordinated bonds to BB+.

Fitch trimmed Scotiabank Peru SAA’s foreign-currency IDR by one notch to BBB+ from A-, as it is capped by Peru's country ceiling at BBB+. The downgrade on the bank's local-currency IDR to A- from A mirrors the current downgrade on the sovereign LC IDR, since the agency will likely maintain a maximum of two-notch difference between these two ratings, the agency said.

Finally, Fitch said it cut Creditcorp Ltd.’s IDR and senior unsecured rating to BBB from BBB+.

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