Fitch lifts local ratings of four Peru banks

Fitch Ratings said it completed a peer review of four state-owned financial institutions in Peru: Banco Agropecuario, Banco de la Nacion, Corporacion Financiera de Desarrollo (Cofide) and Fondo Mivivienda.

As a result, Fitch said it aligned the banks’ issuer default ratings with Peru's sovereign rating by affirming those ratings at BBB+.

Fitch also said it upgraded the banks' local-currency short-term issuer default ratings to F1 from F2, which was in line with the sovereign’s ratings.

The issuer default ratings of Peru's four state banks reflect the support they would receive from their owner, the Republic of Peru, should it be required, the agency said.

Although there is no explicit guarantee, Fitch said it believes the likelihood that the sovereign would provide support is strong given the key roles played by these banks in the government's strategy for the development of priority sectors of the economy.

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