Economic crisis threatens bank profits

The profits of banks in the region will be affected by the global economic crisis, according to a report published last Wednesday by American rating agency, Standard & Poors.

Friday, September 19, 2008

The firm says that most of the banks in Central America and the Caribbean have had a stable performance, despite increased inflation, scarcity of liquidity in the international markets and restrictive monetary policies by Central Banks.
"Said factors will continue to increase funding costs thereby reducing profit margins and putting pressure on profitability in the second quarter of 2008," stated Leonardo Bravo, an analyst at the firm and one of the authors of the report.

More on this topic

S & P Also Rates Honduras as Negative Outlook

March 2013

Standard & Poor's has revised its outlook on the long-term sovereign rating of Honduras, from stable to negative due to the risk of continued deterioration of macroeconomic stability.

From a statement from Standard & Poor's Ratings Services:

Standard & Poor's has revised the outlook to negative for Honduras because of its larger fiscal deficits

Risk Rating Companies Meet With Panamanian Government

May 2010

Representatives from Standard & Poor’s and Moody’s will visit Panama to meet with government authorities and private sector representatives.

Authorities will first meet with Standard & Poor’s delegates, and on May 25 they will do the same with Moody’s executives.

“With S&P they will discuss how to take the Panamanian case up to the central rating committee and trying to improve the country’s current rating of BB+ Positive”, reported Laestrella.com.pa.

S&P Lowers Salvadoran Rating to “BB”

May 2009

Standard & Poor's risk rating, lowered El Salvador’s rating from "BB+" to "BB."

The rating firm indicated that the effects of international crisis on the Salvadoran economy are mainly reflected in the fiscal situation.

Analyst Ricardo Perdomo told Laprensagrafica.com: "The progressive deterioration of the economy, especially in regards to the increasing fiscal deficit, allowed a prediction that ratings would go down."

S&P lowers outlook for Guatemala

November 2008

S&P revised its outlook from positive to stable, but it maintained its country risk rating for foreign currency at BB/B.

"The revision from positive to stable reflects the slowdown of record growth, both for tax collection as well as for the growth of the GDP during the last two years," explained Roberto Sifon Arevalo, S&P analyst.

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