September 30, 2016 / 2:01 PM / a year ago

Fitch Reviews Peruvian State-Owned Financial Institutions

(The following statement was released by the rating agency) NEW YORK, September 30 (Fitch) Fitch Ratings has 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 (FMV). As a result of the review, Fitch aligned the banks' Issuer Default Ratings (IDRs) with Peru's sovereign rating. Fitch also upgraded the banks' Local Currency Short-Term IDRs to 'F1' from 'F2', which was in line with Fitch's assignment of a Local Currency Short-Term IDR to the sovereign in July 2016. A full summary of the rating actions follows at the end of this release. KEY RATING DRIVERS The IDRs of Peru's four state banks reflect the support they would receive from their owner, the Republic of Peru, should it be required. Although there is no explicit guarantee, Fitch 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 (agriculture, affordable housing and infrastructure). In addition, Banco de la Nacion is an important financial service provider to the government itself, maintains the country's largest retail banking network, and is integral to the collection of tax receipts and the payment of social benefits. Peru's ability to provide such support is reflected in its Sovereign Rating ('BBB+/A-') and underpins the banks' Support and Support Rating Floor ratings. Fitch also affirmed Banco de la Nacion's Viability Rating (VR) of 'bbb-' in light of the bank's strong and stable profitability, exceptional asset quality, high levels of liquidity and access to stable, low cost funding. For more details on the particular key rating factors and rating sensitivities of each of these entities, please refer to individual rating action commentaries published today and available at Fitch has taken the following rating actions: Banco Agropecuario: --Foreign Currency long-term IDR affirmed at 'BBB+'; Outlook Stable; --Foreign Currency short-term IDR affirmed at 'F2'; --Local Currency long-term IDR affirmed at 'A-'; Outlook Stable; --Local Currency short-term IDR upgraded to 'F1' from 'F2'; --Support Rating affirmed at '2'; --Support Rating Floor affirmed at 'BBB+'; --Local Currency Long-term rating to a long-term unsecured loan at 'A-(emr)'. Banco de la Nacion --Foreign currency long-term IDR affirmed at 'BBB+'; Outlook Stable; --Local currency long-term IDR affirmed at 'A-'; Outlook Stable; --Foreign currency short-term IDR affirmed at 'F2'; --Local Currency short-term IDR upgraded from 'F2' to 'F1'; --Support Rating affirmed at '2'; --Support Rating Floor affirmed at 'BBB+'; --Viability Rating affirmed at 'bbb-'. COFIDE --Foreign currency long-term IDR at affirmed 'BBB+'; Outlook Stable; --Local currency long-term IDR affirmed at 'A-'; Outlook Stable; --Foreign currency short-term IDR affirmed at 'F2'; --Local Currency short-term IDR upgraded from 'F2' to 'F1'; --Support Rating affirmed at '2'; --Support Rating Floor affirmed at 'BBB+'; --Senior unsecured debt affirmed at 'BBB+'; --Subordinated debt affirmed at 'BBB'. FMV --Foreign currency long-term affirmed at 'BBB+'; Outlook Stable --Foreign currency short-term affirmed at 'F2'; --Local currency long-term IDR affirmed at 'A-', Stable Outlook; --Local Currency short-term IDR upgraded from 'F2' to 'F1'; --Support rating affirmed at '2'; --Support floor affirmed at 'BBB+'; --Senior unsecured debt affirmed at 'BBB+'. Contact: Mark Narron Director +1-212-612-7898 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Andres Marquez Director +571 3269999 Ext 1220 Sergio Pena Associate Director + 571 307 5180 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: Additional information is available on ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. 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