Core subsidiary of Banco de Credito del Peru (BCP); Long track record and good market position in the Peruvian micro-lending sector; and Improving operational performance. 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 on MiBanco for the next 24 months reflects that of BCP and our view that the bank will remain BCP's core subsidiary for the foreseeable future. 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 to maintain sound operational performance and manageable asset quality indicators going forward. We
