S&P rates Cofide notes BBB

Standard & Poor's said it assigned a BBB rating to Corporacion Financiera de Desarrollo SA's (Cofide) proposed up to $500 million 10-year notes.

The rating on the senior unsecured notes is the same as the issuer credit rating on the Peru-based bank because the notes will rank equally in right of payment with all other senior unsecured obligations of the bank, S&P said.

The proceeds will be used for general business purposes, including increasing the financing of its infrastructure loan portfolio and securities holdings, S&P said.

The ratings reflect its adequate business position, moderate capital and earnings, adequate risk position, average funding and adequate liquidity, the agency said.

The long-term rating is one notch higher than the BBB- stand-alone credit profile because there is a high likelihood that the Peruvian government would provide extraordinary timely support to Cofide in financial distress, S&P said.

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