Fitch rates Banco de Credito del Peru notes BBB+

Fitch Ratings said it assigned an expected long-term rating of BBB+(EXP)emr to Banco de Credito del Peru's (BCP) upcoming Peruvian Sole-denominated senior unsecured fixed-rate notes.

The notes (in an amount to be determined), will pay a fixed interest rate to be set at the time of issuance. The notes' maturity date will also be set at the time of issuance and interest payments will be made semi-annual until maturity.

The subscript "emr" was added to the rating of the local currency-linked issuance to reflect the embedded market risk of exchange rate fluctuations between the Sol and the dollar given that the issuance will be denominated in Soles while settlement will be in dollars.

Fitch said it considers that the appropriate anchor for this issue rating is the bank's foreign currency issuer default rating. Given that the settlement of the notes is in dollars, there is transfer and convertibility risk, which is addressed by the entity's foreign currency issuer default rating, regardless of the fact that the issuer is not bearing any material currency risk, since these notes will be denominated in Peruvian Soles.

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