S&P gives BBB- to BBVA Peru notes

S&P said it assigned a BBB- issue-level rating to Banco BBVA Peru's planned subordinated 10.25-year notes, subject to market conditions.

“We rate the notes one notch below our BBB issuer credit rating on the bank (which is below its bbb+ stand-alone credit profile), reflecting contractual subordination. The rating also incorporates that the notes are nondeferrable and don't have a mandatory contingent capital clause.

“In addition, we assign minimal equity content because these notes–considered as tier II by the Peruvian regulator–don't have characteristics of going concern contingent capital. We believe that the notes would be subject to a possible write-down only in resolution,” S&P said in a press release.

The bank will use the proceeds to refinance debt.

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