Fitch lowers Banco de Credito del Peru

Fitch Ratings said it downgraded Banco de Credito del Peru's viability rating and issuer default ratings by one notch to BBB+ and BBB+ from A- and A-, respectively, in line with Peru's sovereign rating.

The agency also said it downgraded the bank's senior unsecured debt to BBB+ from A-, subordinated debt to BBB from BBB+ and junior subordinated debt to BB- from BB.

The outlook is stable.

The ratings reflect the agency's view that despite the bank's leading franchise and strong credit profile, structural constraints in the operating environment no longer warrant the bank's one-notch rating above the sovereign, Fitch said.

These constraints include the banking system's reliance on the central bank as a provider of foreign-currency hedging, as well as local-currency liquidity, the agency said.

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