Peru-based universal bank Banco Credito del Peru has maintained a leading market position in the highly-concentrated Peruvian banking system, despite asset quality deterioration. We are affirming our 'BBB+' long-term and 'A-2' short-term issuer credit ratings on the bank. The negative outlook reflects rising economic risk for banks operating in Peru, resulting from rapid growth in credit and private-sector leverage during the past few years, which has already begun to weaken Peruvian banks' credit quality. The outlook also reflects potential rapid deterioration in the banks' asset quality, profitability, and capitalization if the private-sector debt burden becomes excessive should economic conditions worsen. On June 25, 2015, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term and 'A-2' short-term issuer credit ratings on
