Banco de Credito del Peru

The stable outlook on BCP for the next two years mirrors the outlook on Peru. We expect that the ratings on the bank will move in tandem with those on the sovereign because of BCP's high exposure to the domestic market. We rarely rate financial institutions higher than the sovereign where they operate because we consider it unlikely that these institutions would remain unaffected by developments in domestic economies. If higher risks materialize, damaging the operating conditions for banks in Peru--indicated by a downward revision of our Banking Industry Country Risk Assessment (BICRA) economic risk score--it could hurt the bank's capitalization and intrinsic credit fundamentals, but wouldn't lead to a negative rating action. The stable outlook on BCP also considers

...BCP has robust business stability thanks to its leading position in Peru's financial system. We expect BCP's well-recognized franchise, large and stable client base, and diversified business lines to continue providing good business stability and to remain a rating strength. We expect capitalization to remain solid. This is due to the consistent improvement in results after the peak of the pandemic and the bank's ability to adjust dividend distributions, if necessary. However, BCP's risk-adjusted capital (RAC; calculated according to S&P Global Ratings' methodology) ratios could be pressured amid rising economic risk for Peru's banking industry. This could prompt us to revise downward BCP's stand-alone credit profile (SACP), but not its ratings, which the sovereign ratings currently limit....

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