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Fitch assigns ratings to Peru's Intercorp Financial

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Fitch assigns ratings to Peru's Intercorp Financial

Fitch Ratings on Oct. 5 assigned BBB long- and F3 short-term foreign and local currency issuer default ratings on holding company Intercorp Financial Services Inc.

The outlook is stable.

The ratings reflect the business and financial profiles of Intercorp Financial's subsidiaries, particularly its main operating subsidiary Banco Internacional del Perú SAA, or Interbank, which has a strong franchise and consistent financial performance.

However, the issuer default ratings of the holding company are one notch below those of its main subsidiary, reflecting the parent's separate jurisdiction, the lack of regulatory focus on the company on a consolidated basis, and the potential for regulatory restriction of liquidity upstreaming to the parent in the event of solvency pressures at Interbank, Fitch said.

The ratings also consider Intercorp Financial's low double leverage, the significant reputational risks associated with a holding company default as evidenced by Interbank's role in the group, Intercorp Financial's large majority ownership of Interbank, and the common branding across the group.