Strong support from its ultimate parent, Banco de Credito del Peru (BCP; BBB+/Negative/A-2), which is the largest bank in Peru; Leadership, long track record, and expertise in its target market; the Peruvian microlending sector; and Sound historic operational performance with return on equity (ROE) consistently above 20% since 2016; however, the consequences of pandemic will hit profits this year. Concentration in microlending business activities, which tends to have higher-than-average exposure to economic credit cycles and losses. However, this is partially mitigated by the high diversification of the customer base and the business flexibility of borrowers; and Margins are pressured because of the economic lockdown. The negative outlook on MiBanco reflects the negative trend on the economic risk of Peru's Banking
