Fitch lowers BBVA Banco Continental

Fitch Ratings said it downgraded BBVA Banco Continental's viability rating and issuer default ratings to BBB+ and BBB+, respectively, in line with Peru's sovereign issuer default rating.

The outlook is stable.

While the bank maintains a leading franchise and strong credit profile, Fitch said it believes structural constraints in the operating environment no longer warrant rating the bank one notch higher than the sovereign.

These constraints include the banking system's reliance on the central bank as a provider of foreign-currency hedging, as well as local-currency liquidity, the agency said.

The operating environment and the bank's robust franchise highly influence its viability rating, Fitch said.

The ratings also consider the bank's solid asset quality and ample reserves, robust and consistent financial performance, diversified funding and adequate capital, the agency said.

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