Strong business position within the Peruvian financial system as the largest bank in the country with a diversified business mix; Solid operating performance and track record in Peru; and Sound capitalization. Low per capita income weakens Peru's economic resilience and limits debt capacity; and Worsening asset quality industry-wide due to the declining performance of small and midsize enterprises (SMEs) in the country. The stable outlook on Banco de Credito del Peru (BCP) over the next two years reflects our view that it will maintain its improved capitalization metrics, its leading position in Peru, and its sound operating performance. A downgrade is possible in the next 24 months if we think that BCP's risk-adjusted capital (RAC) ratio could decline to below
