Given Corporacion Financiera de Desarrollo S.A.'s (COFIDE's) role as the agent in promoting the government's key objectives prompts the latter to support the bank if financial stress persists; and Financial intermediation business (second-floor lending to SMEs) should significantly boost credit growth in 2020 amid COVID-19. Credit exposure to remain concentrated by single-name and sector, which makes capital and asset quality metrics volatile; and High equity exposure on its banking book impairs the bank's capitalization position. The stable outlook on COFIDE reflects our view that its capitalization should continue to benefit from the government's financial support despite the increasing credit risk in the Peruvian economy. We expect credit provisioning to rise in the next two years and the bank to remain
