...Stand-Alone Assessment: Banco de Credito Del Peru's (BCP, or the bank) Issuer Default Ratings (IDRs) are driven by its 'bbb' VR. Fitch Ratings believes the bank's operating environment (OE) 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 sustained asset quality, ample and increasing reserves, reduced but improving profitability, as well as its diversified funding base. Capital metrics are commensurate to the rating, but also decreased by 2Q21. 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 VR: Fitch believes the current Peruvian OE highly influences the bank's financial profile. The stabilization of the OE mirrors the Stable Rating Outlook of the sovereign rating. This indicates that Fitch expects any modest additional fallout from...
