Strong business position within the Peruvian financial system as the largest bank in the country with a diversified business mix; Solid operating performance and track record in Peru; and Sound capitalization. Low per capita income weakens Peru's economic resilience and limits debt capacity; and The industry's exposure to cyclical segments, such as small- and mid-size enterprises (SMEs), weakening asset quality. The stable outlook on Banco de Credito del Peru (BCP) over the next two years reflects our view that it will maintain its improved capitalization metrics, its leading position in Peru, and its sound operating performance. A downgrade is possible in the next 24 months if we think that BCP's risk-adjusted capital (RAC) ratio could decline below 10% due to
