Moody's rates Banco de la Nacion A3, stable outlook

The credit rating agency also assigned a baa2 baseline credit assessment (BCA) and adjusted BCA, and long and short term counterparty risk assessments of A3 (cr) and P-2(cr) respectively. The outlook is stable.

It should be noted this is the first time that Moody's has rated Banco de la Nacion.

The following ratings and assessments were assigned to the State-run bank:

- Long and short term global scale deposit rating of A3/P-2 in local and foreign currency, stable outlook

- Long and short term local currency counterparty risk ratings in local and foreign currency of A3 and P-2

- Adjusted baseline credit assessment of baa2

- Baseline credit assessment of baa2

- Long and short term counterparty risk assessment of A3(cr) and P-2(cr)

Banco de la Nacion's A3 deposit rating incorporates Moody's assessment that the bank is effectively backed by its sole shareholder, the Government of Peru (A3, stable) given Nacion's key role as the Peruvian government's financial agent. 

The bank's rating also captures its solid financial fundamentals, including very strong profitability, capital and asset quality, ample liquidity, and preferential access to a large base of inexpensive deposit funding, strengths that are partially offset by its lack of business diversification given its narrow focus on servicing public sectors employees. 

These fundamental strengths and weaknesses are reflected in the baa2 BCA.

(END) NDP/DTK/RMB