(The following statement was released by the rating agency)
NEW YORK, January 15 (Fitch) Fitch Ratings expects to rate Banco
de Credito del
Peru's (BCP) upcoming U.S. dollar subordinated notes 'BBB(exp)'.
The notes - for
an amount to be determined - will be issued by BCP through its
branch. The notes will be consolidated and form a single series
existing $520 million subordinated notes that BCP originally
issued on April 24,
Principal under the notes will mature on April 24, 2027, and
will be made on April 24 and Oct. 24 of each year until 2022 and
on Jan. 24,
April 24, July 24 and Oct. 24 from 2023 until maturity. The
notes will carry a
fixed interest rate of 6.125% until 2022 and a LIBOR-based
starting on 2023. The final rating is contingent upon the
receipt of final
documents conforming to information already received.
KEY RATING DRIVERS
BCP has a long-term local and foreign currency Issuer Default
Ratings (IDR) of
'BBB+'; both of them driven by BCP's Viability Rating (VR),
which is currently
at 'bbb+'. BCP's ratings reflect its dominant franchise; large
sound performance; diversified balance sheet and revenue stream;
deposit base; sound asset quality; and adequate reserves and
Fitch's criteria, the notes will be rated one notch below BCP's
one notch for loss-severity, but no notches for incremental
relative to the bank's VR.
The notes rank junior to BCP's senior unsecured debt and will be
subordinated to all of BCP's secured indebtedness with respect
to the value of
its assets securing that indebtedness, certain direct, unsecured
obligations that in case of insolvency are granted preferential
pursuant to Peruvian law, and all of the existing and future
BCP's subsidiaries, including trade payables. The notes will
with all of BCP's existing and future subordinated debt and will
be senior to
BCP's existing and future junior subordinated debt.
BCP will use the proceeds for general business purposes.
Considering the bank's
solid capital levels and sound profitability, the impact on the
is not deemed significant by Fitch.
The subordinated notes' rating is sensitive to any changes in
BCP's VR. In
particular, BCP's VR are highly correlated with the strength of
economy; should the economic environment continue to improve, as
is reflected in
its sovereign ratings, and the bank maintain a consistent
performance and its
structural strengths, BCP's ratings could be upgraded.
Though not Fitch's base case, BCP's VR and IDRs could suffer if
environment deterioration materially affects the bank's asset
performance, and leads to an erosion of the bank's reserve and
Fitch currently rates BCP as follows:
--Long-term foreign currency IDR 'BBB+', Stable Outlook;
--Short-term foreign currency IDR 'F2';
--Long-term local currency IDR 'BBB+', Stable Outlook;
--Short-term local currency IDR 'F2';
--Viability Rating 'bbb+';
--Support rating '2';
--Support floor 'BBB-';
--Senior unsecured debt 'BBB+';
--Subordinated debt 'BBB';
--Junior subordinated debt 'BB-'.
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15,
--'Assessing and Rating Bank Subordinated and Hybrid Securities'
(Dec. 5, 2012).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Assessing and Rating Bank Subordinated and Hybrid Securities
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