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Fitch affirms Peruvian financial entities following sovereign action

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Fitch affirms Peruvian financial entities following sovereign action

FitchRatings on Sept. 29 acted on several Peruvian financial institutions followingthe affirmation ofthe sovereign's ratings.

Fitchaffirmed Banco de laNación, BancoAgropecuario, Corporación Financiera de Desarrollo SA and 's long- andshort-term foreign currency issuer default ratings at BBB+ and F2,respectively, as well as their long-term local currency issuer default ratingsat A-. The entities' support ratings were affirmed at 2. Meanwhile, all oftheir short-term currency issuer default ratings were upgraded to F1 from F2.The outlooks are stable.

The ratingagency also affirmed Banco de la Nación's viability rating at "bbb-."

Inaffirming the ratings, Fitch said they reflect the strong probability that theentities would receive support from their owner, the Peruvian government, ifneeded. Fitch recognized the importance of the entities in the government'soperations, thus the likelihood of support even though there is no explicitgovernment guarantee.

Meanwhile,Banco de la Nación's viability rating reflects the bank's capital position,which is under long-term pressure due to the bank's high payout and by thesteady growth in the bank's risk-weighted assets.