...Stand-Alone Strength: Banco de Credito del Peru's (BCP, or the bank) Long-Term Issuer Default Rating (IDR) is based on its stand-alone financial strength, as reflected in its Viability Rating (VR). Despite its local importance, BCP's ratings are constrained to the sovereign's rating due to the bank's limited geographic diversification outside of Peru and its material exposure to foreign currency. Leading Franchise: The bank's ratings are highly influenced by the bank's diversified business model and leading market share across all major loan products, giving it one of the strongest banking platforms in Latin America. Although its market share by loans has declined modestly since its 2014 acquisition of Mibanco, it continues to lead its next largest competitor by 12 percentage points at YE17. Sound Risk Management: Conservative underwriting, sound risk controls and business diversification have allowed BCP to navigate a challenging year of rising problem loans in the construction sector...
