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S&P places Intercorp Financial Services on CreditWatch Negative

S&P Global Ratings on Feb. 1 placed Intercorp Financial Services Inc.'s BBB- long-term issuer credit and issue-level ratings on CreditWatch with negative implications after a similar placement on its parent company, and also affirmed the ratings on Banco Internacional del Perú S.A.A., with the outlook on the bank remaining stable.

On Jan. 31, the rating agency placed the BBB- long-term corporate credit and issue-level ratings of Intercorp Financial Service's parent, Intercorp Perú Ltd., on CreditWatch with negative implications, due to a similar action on InRetail Consumer, the largest operating subsidiary within Intercorp Peru's retail investments.

The rating agency placed InRetail Consumer on CreditWatch Negative after the company announced that it acquired pharmaceutical distributor Quicorp SA for $583.0 million.

S&P said despite Intercorp Financial Services being independent from the operations of the group's businesses, "IFS is not entirely ring-fenced, given that regulatory restrictions at the holding level are not sufficiently strong to prevent — to an extent that would impair its creditworthiness the intermediary holding from supporting the wider group."

"As a result, if the parent were to show weakened creditworthiness, it would undermine IFS's creditworthiness as well," S&P noted.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.