Fitch Affirms Peruvian DPR Programs at 'A+'; Outlook Stable

CHICAGO--()--Fitch Ratings has affirmed its ratings on all outstanding series issued by CCR Inc. MT-100 Payment Rights Master Trust (Banco de Credito del Peru [BCP]), Continental DPR Finance Company (BBVA-Banco Continental [BBVA Continental]) and SBP DPR Finance Company (Scotiabank Peru S.A.A. [SBP]) at 'A+'/Outlook Stable. A full list of rating actions follows at the end of this release.

Each transaction is backed by collections generated from diversified payment rights (DPRs) originated by the sponsor bank. DPRs refer to electronic payment orders intended for payment to third-party beneficiaries and mostly relate to export payments, capital flows and remittances.

KEY RATING DRIVERS

The affirmations reflect: (i) the credit quality and ongoing performance risk of each sponsor bank; (ii) the strength of each DPR program; (iii) the relatively small size of the individual DPR programs; and (iv) sovereign stability.

CCR Inc. MT-100 Payment Rights Master Trust (Banco de Credito del Peru)

On May 19, 2016, Fitch affirmed BCP's Issuer Default Ratings (IDRs) and Viability Rating (VR) at 'A-' and 'a-', respectively, with a Stable Outlook. Based on its position as the largest bank in the Peruvian financial system and associated role in the Peruvian economy, Fitch views the bank's DPR business line and performance risk as consistent with a going-concern assessment (GCA) score of 'GC1'.

Flows through designated depository banks (DDBs) supported an average maximum monthly debt service coverage ratio (DSCR) of 126.4x in 2015. Fitch's maximum monthly DSCR considers DDB flows and the maximum monthly debt service during the life of the program.

As of April 2016, the outstanding balance of the program was $436.3 million, which represents about 1% of the bank's total liabilities.

Continental DPR Finance Company (BBVA-Banco Continental)

On May 19, 2016, Fitch affirmed BBVA Continental's VR and IDRs at 'a-' and 'A-', respectively, with a Stable Outlook. Based on its position as the second largest bank in the Peruvian financial system and associated role in the Peruvian economy, Fitch views the bank's DPR business line and performance risk as consistent with a GCA score of 'GC1'.

DDB flows supported an average maximum quarterly DSCR of 127x in 2015. Fitch's DSCR considers average quarterly DDB flows and maximum quarterly debt service during the life of the program.

As of April 2016, the outstanding balance of the program was $190.3 million, less than 1% of BC's total liabilities.

SBP DPR Finance Company (Scotiabank Peru S.A.A.)

On May 19, 2016, Fitch affirmed SBP's Foreign and Local Currency (FC/LC) IDRs at 'A-' and 'A+', respectively, and its VR at 'bbb+'. The Rating Outlook is Stable. While the GC1' assigned to SBP could allow the transaction to be rated higher than the LC IDR assigned to the bank, Fitch limits the rating differential for higher rated investment grade entities. Additionally, Fitch considers the VR of the bank when determining the notching differential for entities with significant parental support. The transaction's structural characteristics allow the rating of the DPR program to be two notches higher than the bank's FC IDR of 'A-'.

DDB flows supported an average maximum quarterly DSCR of 97x in 2015. Fitch's DSCR considers average quarterly DDB flows and maximum quarterly debt service during the life of the program.

As of April 2016, the outstanding balance of the program was $105.6 million, less than 1% of the bank' total liabilities.

RATING SENSITIVITIES

The ratings assigned to each transaction are sensitive to changes in the credit quality of the relevant sponsor bank, the performance of the corresponding DPR business line, and changes in the sovereign environment.

Fitch has affirmed the following ratings:

CCR Inc. MT-100 Payment Rights Master Trust

--Series 2010-C notes at 'A+'; Outlook Stable;

--Series 2012-A notes at 'A+'; Outlook Stable;

--Series 2012-B notes at 'A+'; Outlook Stable;

--Series 2012-C notes at 'A+'; Outlook Stable.

Continental DPR Finance Company

--Series 2010-A loans at 'A+'; Outlook Stable;

--Series 2012-A notes at 'A+'; Outlook Stable;

--Series 2012-B notes at 'A+'; Outlook Stable;

--Series 2012-C notes at 'A+'; Outlook Stable;

--Series 2012-D notes at 'A+'; Outlook Stable.

SBP DPR Finance Company

--Series 2010-A notes at 'A+'; Outlook Stable;

--Series 2010-B notes at 'A+'; Outlook Stable;

--Series 2010-C loans at 'A+'; Outlook Stable;

--Series 2010-D loans at 'A+'; Outlook Stable;

--Series 2012-A loans at 'A+'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Sources of Information:

In addition to the sources of information identified in the master criteria, this action was additionally informed by information from BCP, BBVA Continental and SBP.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Future Flow Securitization Rating Criteria (pub. 12 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868191

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005575

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005575

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Gregory Lane
Director
+1-312-606-2304
Fitch Ratings, Inc.
70 W. Madison
Chicago, IL 60602
or
Committee Chairperson
Greg Kabance
Manager Director
+1-312-368-2052
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Gregory Lane
Director
+1-312-606-2304
Fitch Ratings, Inc.
70 W. Madison
Chicago, IL 60602
or
Committee Chairperson
Greg Kabance
Manager Director
+1-312-368-2052
or
Media Relations
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com