Rating agency warns of risks for Guatemala's banking system

Banks should increase their equity in order to cover unexpected losses in order to prevent their credit portfolios from deteriorating.

Thursday, August 7, 2008

The banking sector underwent a rigorous examination of its indicators by the Regional Credit Rating Agency, which issued a rating of 72.3%.
According to the CRA, the banks should start preparing to face a complex scenario because of the effects of inflation on their clients and the deterioration of their credit portfolio, the restriction of liquidity (money in circulation), the behavior of the exchange rate, the increase in interest rates, and the restricting of conditions to obtain external or foreign financing.

More on this topic

Risk for Guatemala, Costa Rica and El Salvador

June 2012

In all three countries, public finances have deteriorated due to higher fiscal deficits generated by increased government spending.

Public deficit and public debt have deteriorated the quality of the finances of Costa Rica, El Salvador and Guatemala.

"We have a negative outlook on our 'BB' rating for Guatemala and we have cut El Salvador’s rating by two grades over the past three years.

S & P Downgrades Odebrecht

April 2016

Confirmation of the decline in the financial capacity of the construction company has strengthened arguments by those calling for the revision of their contracts and that the firm not be awarded others.

From a statement issued by Standard & Poor's:


SAO PAULO (Standard & Poor's) March 29, 2016--Standard & Poor's Ratings Services lowered its global scale corporate credit rating on Odebrecht Engenharia e Construção S.A.

Costa Rica Long-Term Ratings Lowered To 'BB-'

February 2016

Noting the political system's inability to agree on fiscal issues, Standard & Poor's has downgraded, from BB to BB-, the rating for the country's long-term debt, giving it a negative outlook.

Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative

Fiscal credibility and sovereign risk

January 2010

Fitch Ratings warned that although Central American sovereigns have resisted the global crisis pretty well so far, they now require fiscal consolidation in order to maintain their credit ratings.

Summary
Fitch‐rated Central American sovereigns have thus far withstood the destabilizing effects of the global economic and financial crisis, despite monetary and exchange rate policy challenges.

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Pacific Credit Rating Panamá

Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
Phone: (507) 214 4603

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