S&P Raises BCP Rating To Above Sovereign Level

Ratings agency Standard & Poor’s has raised its long-term counterparty credit rating on Banco de Credito del Peru (BCP) to BBB- from BB+, one notch above the sovereign foreign currency rating, and its short-term rating to A-3 from B. The outlook is stable. S&P said the ratings action reflected the improving economic and industry risks for Peru’s banking sector and specifically the Bank’s likely survival of any economic chaos of a “sovereign stress scenario” because of BCP’s “superior liquidity; traditional stability of its deposit base in past crises; benefits from a strong retail franchise; strong business and financial diversification; and very solid financial performance”.