Costa Rica: Fitch forecasts deterioration of bank portfolios
The accelerated growth of bank loans could result in a deterioration of portfolios due to a change in interest rate trends.
Tuesday, April 29, 2008
If interest rates increase, these portfolios could experience higher default levels, according to a report released yesterday from the risk rating agency Fitch Ratings.
Fitch changed its long term perspective rating from "stable" to "negative" for the banks Agricola, HSBC, and Scotiabank in El Salvador
Fitch maintains a Negative Rating Watch on the national ratings of the Nicaragua's Banco de la Producción, S.A., and its subsidiaries (BANPRO) and Banco de Crédito Centroamericano, S.A. (BANCENTRO) following the announcement that 395.3 million córdobas (20.6 million dollars), equal to the amount of capital and interest of the bank bonds (CENIS) that matured April 15, 2008, has been deposited in an account in the name of the Minister of Finance and Public Credit in the Central Bank of Nicaragua.
Fitch Ratings has issued a special report entitled, "Central American Banking: After the Crisis, a Disparate Evolution"
Lending by banks in Honduras rose by 34 percent last year thanks to a stable economy and a reduction in real interest rates, Fitch Ratings agency said.
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