PERU Ministry of Economy and Finance
SMV
Superintendency of the Market in Securities
DECADE OF EQUAL OPPORTUNITIES FOR WOMEN AND MEN -YEAR OF UNIVERSALIZATION OF HEALTH

Miraflores, 05 May 2020

CIRCULAR No. 135-2020-SMV/11.1

Gentlemen
Present.-

Ref.: File No. 2020009950

I address you within the framework of the supervisory powers contemplated in article 40 of the Regulation of Risk Rating Companies (hereinafter, ECR Regulation), approved by SMV Resolution No. 032-2015-SMV/01 and its amending norms, as well as to the responses formulated in the Circular of the reference.

In this regard, considering the economic and financial effects of COVID-19 that are manifested in various variables, such as falls in stock market indices, negative economic growth rates (recession), among others; that regarding the issuers of securities of debt-representative instruments there is a valid concern as to whether said companies, in the current circumstances, are in a position to comply with the obligations agreed in the issuance contracts, and; that a permanent surveillance work is required aimed at ensuring that the aforementioned circumstances are duly reflected in the risk classification granted to the various securities; the following is required of your represented company:

(a) Report on the permanent surveillance work that your represented company is carrying out on the credit situation of the issuers, as established in article 25, numeral 25.1 of the ECR Regulation. It is necessary to remember that this situation is unique, so many issuers may enter into a situation of payment defaults, and even cease operations permanently.

(b) Communicate, in accordance with the methodological criteria established by your represented company, whether the impact of the current situation may modify the risk classifications on the issuance programs and/or securities for which it performs the risk classification work, in accordance with article 25 numeral 25.4 of the ECR regulation

Finally, taking into account the current situation, emphasis should be placed on the need for the risk classification work and the duty of permanent surveillance to be carried out within a framework of due diligence, resorting to all relevant information available to it, coming from both the issuer itself and external sources, in order to keep investors informed about the risks inherent to the securities, so that they can make their investment decisions duly informed.

This request must be attended to within a period of three (03) business days, counted from the business day following receipt of this.

Without any other particular, I remain yours.

Sincerely,

Reason:

Signed by: GODOS GARCIA Alix Fernando FAU 201310

Alix Godos
General Intendant
General Intendancy of Conduct Supervision