The capitalization metrics of Corporacion Financiera de Desarrollo S.A. (COFIDE) are improving thanks to conservative loan underwriting coupled with an increasing capital base. Regulatory capital metrics are also improving amid implementation of Basel III principles in Peru. We have raised our capital and earnings evaluation on the bank by one category as we forecast S&P's risk-adjusted capital ratio will be close to 7.0% in 2026-2027, while we expect regulatory solvency metrics to remain significantly stronger than those of the Peruvian commercial banks. As result, we revised upward the stand-alone credit profile (SACP) on the entity to'bb'from'bb-'. The development bank continues to enhance its operational and institutional framework to align with international development banking standards. It is increasingly
