Fitch upgrades Peru Payroll notes

Fitch Ratings said it upgraded the $230 million zero-coupon senior secured class A notes due 2029 issued by Peru Payroll Deduction Finance Ltd. to BBB+ from BBB.

The outlook is stable.

The upgrade reflects sustained collateral performance above initial expectations and improved credit quality of EsSalud, Fitch said.

The ratings are not constrained by the originator's credit quality, but are limited by potential cash flow generation risk, which is linked to Peru's issuer default rating, the agency said.

The ratings are based on potential generation risk and are limited by the obligor or counterparty's ability to continue to make these payments, Fitch said.

Given generation risk and the nature of the collections, the transaction's rating is linked to Peru's sovereign ratings, the agency said.

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