Banco de Credito del Peru

The stable rating outlook on BCP for the next two years mirrors that on Peru. S&P Global Ratings expects 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. We could take a negative rating action on BCP if we were to take a similar action on the sovereign. We could upgrade BCP if we were to take a similar action on the sovereign while the bank's stand-alone credit profile (SACP) remained above 'bbb-'. Our bank criteria use our

...Banco de Credito del Peru (BCP) has a highly stable business thanks to its leading position in Peru's financial system. We expect the bank's well-recognized franchise, large and stable client base, and diversified business lines to continue providing good business stability. We expect capitalization to remain solid. Consistently sound results since 2022 and the bank's flexibility to adjust dividend distributions, if necessary, support capitalization. Nonperforming loans (NPLs) should remain stable and manageable at 3.5%-4.0% (under the regulator's methodology) in 2025, following a recovery in recent months. The stability results from the stable domestic macroeconomic outlook, in part due to lower political and weather risks, as well as the bank's tightening of its origination standards....

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