The bonds will mature on
KEY RATING DRIVERS
The assigned rating of the bonds is equal to the entity's long-term foreign currency Issuer Default Rating (IDR) of 'BBB+'. The ratings of FMV are support driven and reflect Fitch's perception of the high probability of support it would receive from the
FMV is an integral and key part of the government; it has an increasingly important role implementing policies to reduce the housing deficit in
FMV was established by the Peruvian Government to promote and finance housing, especially related to social interest. FMV operates as a second-tier bank providing long-term and low-cost funds to its target sectors by lending through Intermediary Financial Institutions (IFIs).
FMV's loans are placed through a trust to IFIs (nearly 85% of the total assets). The related cash flows are administered through the trust. Under Peruvian law, assets held in trust are considered to be bankruptcy remote, consequently in the event of a bankruptcy holders of the rated bonds will not have a direct claim to the assets held by the trust.
The bonds are senior unsecured, but in the event of liquidation will be subordinated to labor claims, tax claims, all the future secured indebtedness, and to other debt and obligations that in case of insolvency are granted preferential treatment under Peruvian law.
The senior unsecured bonds rating is sensitive to any changes in FMV's IDR. As a state-owned financial institution, deeply integrated within the government's structure, FMV's creditworthiness and IDRs are directly linked to those of the
Although not a baseline scenario, the senior unsecured bonds rating could be driven by the entity's financial profile, if Fitch perceives a decrease in the strategic importance of FMV to the government or a lower propensity of the sovereign to provide support. In such case, the senior unsecured bonds rating could be lower than FMV's IDR, given the amount of assets pledged through the trust.
For further information on the drivers and sensitivities of FMV, please refer to Fitch's latest Rating Action Commentary and Full Rating Report on the company, available at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
--'Global Financial Institutions Rating Criteria' (
Global Financial Institutions Rating Criteria
Prol. Alfonso Reyes No. 2612
Piso 8, Col. Del Paseo Residencial
Source: Fitch Ratings
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