Fitch: Banco de Credito del Peru view positive

Fitch Ratings said it revised the outlook of Banco de Credito del Peru to positive from stable and upgraded its individual rating to C from C/D and support floor to BB+ from BB-.

The agency also affirmed the long-term foreign- and local-currency issuer default ratings at BBB-, subordinated notes due 2021 and 2022 at BB+, short-term foreign- and local-currency issuer default ratings at F3 and support rating at 3.

The agency said the upgrade of the individual rating reflects the bank's increasingly diversified balance sheet and revenue stream, driven by its growth in lending to individuals and to small and medium enterprises. This growth has, in turn, improved profitability and internal capital generation.

Banco de Credito del Peru's ratings also reflect its dominant franchise, important market share across all segments, broad and low-cost deposit base, diversified loan portfolio, improved asset quality and adequate reserve coverage, Fitch said.

The ratings factor in its somewhat high obligor concentration and related lending, the agency added.

Fitch said the positive outlook could lead to an upgrade if Peru's economic environment sees a continuation of its relatively benign reaction to the global slowdown.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.