Moody's Investors Service has affirmed the Baa3 local and foreign currency issuer ratings of Peru's Corporación Financiera de Desarrollo S.A. (COFIDE).
The credit rating agency also raised
COFIDE's standalone Baseline Credit Assessment (BCA) and adjusted BCA to b2 from b3.
In addition,
Moody's affirmed COFIDE's Baa2/Prime-2 Local and Foreign Currency Counterparty Risk Ratings (CRR) and the Baa2(cr)/Prime-2 (cr) Counterparty Risk Assessment (CRAs).
The outlook on the ratings was changed to stable, from negative.
The following ratings of COFIDE were affirmed:
- Local and Foreign Currency Issuer Ratings of Baa3, outlook changed to stable from negative
- Long and Short Term Local and Foreign Currency Counterparty Risk Ratings of Baa2/Prime-2
- Long and short term Counterparty Risk Assessments of Baa2(cr)/Prime-2(cr)
The following assessments of COFIDE were raised:
- Baseline Credit Assessment: to b2 from b3
- Adjusted Baseline Credit Assessment: to b2 from b3
Moody's decision to raise COFIDE's BCA to b2 captures the gradual improvements in
asset quality, following sizable write-offs and additional provisions built against problem loans, backed by a capitalization plan.
The rating action also factors in a slight improvement in profitability and ample liquidity that mitigates COFIDE's high reliance on market funds that results from its business model as a non-deposit taking development bank engaged in long-term financing in Peru, with expertise in project financing.
(END) NDP/RMB
Published: 4/27/2019