...IDR Driven by VR: Banco Internacional del Peru S.A.'s (Interbank) Long-Term Issuer Default Rating (IDR) is based on its stand-alone financial strength, as reflected in its Viability Rating (VR). The downgrade of Interbank's VR on April 26, 2019, was driven by the deterioration of its capital adequacy and funding metrics. Ample loan growth recorded in 2018 reverted to the previous positive trend on capital, and Fitch core capital (FCC) declined to 11.1% from 11.7% at YE17. Strong Retail Banking Franchise: Interbank is the fourth largest universal commercial bank in Peru, with market share by assets of 12% at YE18 and leadership in retail banking. The bank's market shares in credit cards and consumer loans at year-end were 24.6% and 21.9%, respectively. Solid Performance: Interbank reported stable and solid performance in 2018, with an operating profit over risk-weighted assets (RWA) of 3.1%, slightly better than the Peruvian system average. The bank's long track record of strong operating...
