MiBanco, Banco de La Microempresa S.A.

Core subsidiary of Banco de Credito del Peru (BCP); Long track record and good market position in the Peruvian micro-lending sector; and Adequate risk-adjusted capitalization. Higher-than-average credit losses due to the challenging environment in the Peruvian microfinance sector; and Moderate diversification of business activities due to heavy emphasis on micro-lending. Our stable outlook for the next 12-24 months on MiBanco reflects that of BCP and our view that the former will remain the latter's "core" subsidiary. We could downgrade MiBanco in the next 12-24 months if its core status to BCP comes under pressure as a result of the group's new strategy or a failure to improve its operating performance in the long term. We could upgrade MiBanco in the

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