Banco de Credito del Peru's Proposed Subordinated Notes Rated 'BBB'

SAO PAULO (S&P Global Ratings) March 19, 2021--S&P Global Ratings today assigned its 'BBB' issue-level rating to Banco de Credito del Peru's (BCP; BBB+/Negative/A-2) proposed subordinated fixed-to-fixed rate notes due 2031 with call option in 2026. This issuance is part of an offer to purchase the outstanding notes due 2026 and 2027, which we view as an opportunistic liability management action given that the bank is offering a higher-than-par and market value and the bonds have a long-term tenor. The ratings on the notes are one notch below the bank's 'bbb+' stand-alone credit profile (SACP), reflecting contractual subordination. No other notching applies, given that the proposed debt is a non-deferrable instrument and doesn't have a mandatory contingent capital clause (the

...March 19, 2021 SAO PAULO (S&P Global Ratings) March 19, 2021--S&P Global Ratings today assigned its '###' issue-level rating to Banco de Credito del Peru's (BCP; ###+/Negative/A-2) proposed subordinated fixed-to-fixed rate notes due 2031 with call option in 2026. This issuance is part of an offer to purchase the outstanding notes due 2026 and 2027, which we view as an opportunistic liability management action given that the bank is offering a higher-than-par and market value and the bonds have a long-term tenor. The ratings on the notes are one notch below the bank's '###+' stand-alone credit profile (SACP), reflecting contractual subordination. No other notching applies, given that the proposed debt is a non-deferrable instrument and doesn't have a mandatory contingent capital clause (the loss absorption capacity of the instrument is activated after the issuer's share capital has been depleted). In addition, we're giving minimal equity content because these notes--considered as Tier II...

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