Moody’s rates Intercorp Peru notes Ba2

Moody's Investors Service said it assigned a Ba2 foreign currency senior unsecured debt rating to Intercorp Peru Ltd.'s proposed debt issuance of $300 million in senior notes with a maturity of up to 10 years.

The outlook is stable.

Proceeds will be used to refinance Intercorp's existing $250 million of senior notes due in 2019. Consequently, Intercorp's bonded debt will increase by a net of $50 million while its maturity is extended to up to 2025. The notes will be governed under the laws of the State of New York.

The instrument will rank pari passu in right of payment with all of the present and future senior obligations of Intercorp, other than obligations preferred by law, that are not otherwise expressly subordinated.

Intercorp's Ba2 debt rating is two notches below the baa3 baseline credit assessment of its main dividend contributor, Banco Internacional del Peru (Interbank), Peru's fourth largest bank. The debt rating reflects the structural subordination of Intercorp to its operating subsidiaries, particularly Interbank and Interseguro, the country's largest provider of annuities, coupled with those subsidiaries' strong franchises and financial metrics. Intercorp is entirely dependent on dividend flows from its subsidiaries, Moody’s said.

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