Bulletin: Peru's Banking Industry Country Risk Assessment Remains At Group '5', Despite Rising Economic Risks

SAO PAULO (S&P Global Ratings) Nov. 30, 2023--Following a review of our Banking Industry Country Risk Assessment (BICRA) on Peru, S&P Global Ratings is keeping the country in BICRA group '5'. The economic risk trend remains negative and the industry risk trend is stable. Our BICRAs are on a scale of '1' to '10', with '1' denoting the lowest risk and '10' the highest. Banks in the system have already adjusted origination standards and are reinforcing provisions, with loan loss reserves accounting for 6.8% of customer loans as of Sept. 30, (annualized), compared to 5.5% at the end of 2019. The government is also implementing measures to mitigate the impact of El Niño, such as extending the "Impulso MYPERU" guaranteed

...To From BICRA group 5 5 Government support Supportive Supportive Economic risk 6 6 Economic resilience High risk High risk Economic imbalances Low risk Very low risk Credit risk in the economy Very high risk Very high risk Economic risk trend Negative Negative Industry risk 3 3 Institutional framework Low risk Low risk Competitive dynamics Intermediate risk Intermediate risk Systemwide funding Intermediate risk Intermediate risk Industry risk trend Stable Stable...

Bulletin