Fitch moves Credicorp view to negative

Fitch Ratings said it changed its outlook for Credicorp Bank, SA to negative from stable and firmed its BB+ long-term issuer default rating. The agency also affirmed the long-term national rating at AA(pan).

“The revision of the outlook reflects Credicorp's diminished profitability in 2022 and Fitch's expectations that the improvement in the operating profit to risk-weighted assets (RWA) ratio in 2023 may not be high enough to sustain a four-year average ratio of 1.5%, which is the Fitch's sensitivity for a rating downgrade,” the agency said in a press release.

The revised outlook also reflects expectations that capitalization could decline over the ratings horizon given the bank’s moderate profitability and future strategic plans, Fitch said.

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