...Structural Constraints in the Operating Environment: Fitch Rating's downgrade of BCP's ratings reflects the agency's view that despite BCP'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. 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, which Fitch views as a persistent feature of the financial system. Strong Credit Profile: BCP's IDR is based on its stand-alone financial strength as reflected in its VR. The operating environment and the bank's dominant franchise highly influence BCP's VR. BCP's VR also considers the bank's adequate loss absorption capacity, high and sustained profitability and sound credit risk management, together with strong liquidity and stable and competitive funding. The bank's diversified business model and resilient margins, has resulted in a...
