Fitch Reviews Peruvian State-Owned Financial Institutions

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings held a peer review for the international scale ratings of four state-owned financial institutions in Peru. As a result of the committee, the ratings of Banco Agropecuario, Banco de la Nacion, Corporacion Financiera de Desarrollo and Fondo Mivivienda were affirmed. The rating actions are summarized at the end of this press release.

KEY RATING DRIVERS

The Issuer Default Ratings (IDRs) of Peru's four state banks reflect the support they would receive from their owner, the Republic of Peru, should it be required. Although there is no explicit guarantee, Fitch Ratings believes the likelihood of sovereign support is strong given the banks' key roles in the government's strategy for the development of priority sectors of the economy (agriculture, affordable housing and infrastructure). In addition, Banco de la Nacion is an important financial service provider to the government of Peru, tasked with tax revenue collection and public sector payments such as government salaries, pensions and social welfare benefits. Banco de la Nacion also maintains the country's largest retail banking network, and serves remote areas where private banks are not present.

Peru's ability to provide such support to the state banks is reflected in its Sovereign Rating ('BBB+/A-') and underpins the banks' Support and Support Rating Floor ratings.

Fitch has also affirmed Banco de la Nacion's VR in light of the bank's strong and stable profitability, supported by strong non-interest income related to its payment and tax collection services on behalf of the government, as well as its exceptional asset quality and ample liquidity.

For more details on the particular key rating factors and rating sensitivities of each of these entities, please refer to individual rating action commentaries, published on Oct. 2, 2015 and available in Fitch's website at www.fitchratings.com.

Fitch affirmed the following international and national ratings as part of its peer review:

Banco Agropecuario:

--Foreign Currency long-term IDR at 'BBB+'; Outlook Stable;

--Foreign Currency short-term IDR at 'F2';

--Local Currency long-term IDR at 'A-'; Outlook Stable;

--Local Currency short-term IDR at 'F2';

--Support Rating at '2';

--Support Rating Floor at 'BBB+';

--Local Currency Long-term rating to a long-term unsecured loan at 'A-(emr)'.

Banco de la Nacion

--Foreign currency long-term IDR at 'BBB+'; Outlook Stable;

--Local currency long-term IDR at 'A-'; Outlook Stable;

--Foreign currency short-term IDR at 'F2';

--Local currency short-term IDR at 'F2';

--Support Rating at '2';

--Support Rating Floor at 'BBB+';

--Viability Rating at 'bbb-'.

COFIDE

--Long-term foreign currency IDR at 'BBB+'; Outlook Stable;

--Long-term local currency IDR at 'A-'; Outlook Stable;

--Short-term foreign currency IDR at 'F2';

--Short-term local currency IDR at 'F2';

--Support Rating at '2';

--Support Rating Floor at 'BBB+';

--Senior unsecured debt at 'BBB+';

--Subordinated debt at 'BBB'.

FMV

--Long-term IDR at 'BBB+'; Outlook Stable

--Short-term IDR at 'F2'

--Long-term local currency IDR at 'A-', Stable Outlook;

--Short-term local currency IDR at 'F2';

--Support rating at '2';

--Support floor at 'BBB+';

--Senior unsecured debt at 'BBB+'.

Additional information is available on www.fitchratings.com

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151006006727/en/

Fitch Ratings
Mark Narron
Director
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Andres Marquez
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Sergio Pena
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Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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