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. MiBanco will continue to drive the group's strategy towards the microfinance lending business as it seeks new opportunities in Peru's highly concentrated banking system. Furthermore, we expect MiBanco's profitability to increase going forward as asset quality improve under stricter underwriting standards, maintaining its RAC
