Fitch Ratings has affirmed its ratings on Scotiabank Peru S.A.A., following the news that the bank plans to take a controlling stake in retail and banking company Cencosud Peru.
Earlier this week, Scotia announced that it has an agreement to acquire 51% of Cencosud, in a deal that it will make it the second-largest credit card issuer in the local market, while also building Scotia’s presence in Peru generally.
Today, Fitch said it views the acquisition as part of the bank’s strategy to “penetrate in the fastest-growing and more profitable retail segments, and is not expected to have any material negative impact on the bank’s company profile or asset quality.”
The rating agency also said that it expects that Scotiabank Peru’s capitalization will remain above its peers’ average and under its conservative internal limits. It also expects the bank to maintain adequate asset-quality ratios and strong profitability.