Banco Nación gets investment grade from Fitch on strong fundamentals, economy

- Wednesday, July 13, 2011

Banco Nación gets investment grade from Fitch on strong fundamentals, economy

Peru's state-owned Banco de la Nación (BN) has received an investment grade rating fromFitch.

BN was given an issuer default rating of BBB- with a positive outlook, reflecting the "full faith and credit" the bank enjoys from Peru's government, the ratings agency said in a statement.

The rating takes into account BN's solid capital base, good asset quality, ample reserves, sound margins, moderate but steady profitability and high liquidity.

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"This rating is the culmination of a series of policies we began four years ago to consolidate our operations," BN general manager Julio Del Castillo told BNamericas.

Fitch expects the bank's loan portfolio to continue its moderate growth path on the back of Peru's rapid economic growth.

BN's rating will be upgraded if and when Peru's sovereign rating is upgraded, said Fitch, adding that the bank's role could expand under the incoming government of Ollanta Humala.

"To date we have not been aware of any new mandates," Del Castillo said. "But as a state bank we will assume the role the government gives us."

To read Fitch's full statement, go to this link