...Strong Credit Profile: Banco de Credito Del Peru S.A.'s (BCP) Foreign Currency IDR remains one notch above Peru's sovereign due to its very strong credit profile. Its VR reflects the bank's adequate loss absorption capacity, given a dominant franchise, high and sustained profitability and sound credit risk management, together with strong liquidity and stable and diversified funding. Fitch Ratings believes the entity will be able to withstand any occasional deterioration in the operating environment. Strong Asset Quality: Sound risk management policies and diversification allowed BCP to maintain strong asset quality -- 90-day past due loan (PDL) below 2% for more than five years, although with a slight increasing trend -- and were covered by ample reserves (2.4x to PDL) at YE15, one of the best among peers in the region. At the same time, the bank's diversified business model and resilient margins, improving efficiency and moderate credit cost resulted in a consistent operating profit to...
