...Stand-Alone Assessment: Banco de Credito Del Peru's (BCP) IDRs are driven by its 'bbb+' VR. Fitch believes the bank's operating environment highly influences the ratings. In addition, the bank's ratings are highly influenced by its leading franchise and well diversified business model. BCP's VR also reflects its solid but deteriorating asset quality, ample and increasing reserves, reduced profitability, as well as its diversified funding base. Capital metrics are commensurate to the rating, but also decreased in 2020. BCP's ratings are constrained to the sovereign level due to limited geographic diversification outside Peru and material exposure to foreign currency. Operating Environment Affects Outlook: The Negative Outlook reflects Fitch's view that downside risks from the economic implications of the coronavirus pandemic will continue in 2021. The effects of the pandemic are expected to continue pressuring asset quality and profitability once relief programs expire, due to low business...
