S&P affirms Fondo Mivivienda

S&P said it affirmed its BBB+ issuer credit rating and senior unsecured debt rating on Fondo Mivivienda SA.

The outlook remains stable.

The agency said the ratings reflects the bank’s narrow business position, which is limited by its role in providing mortgages through Peruvian financial institutions.

Despite the bank's significant presence in the system's mortgage loans, about 15.4% of the market, its participation has been dropping in the last few years amid government benefit cuts and rising nonperforming loans regarding loans issued through financial institutions intermediaries and financed under Fondo Mivivienda’s products, S&P said.

“We expect this trend to reverse during 2018, given FMV's commercial action plan–although soft economic activity could limit our current growth expectations,” the agency said in a news release.

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