Negative Perspective on Salvadorian Banks

Fitch changed its long term perspective rating from "stable" to "negative" for the banks Agricola, HSBC, and Scotiabank in El Salvador

Wednesday, June 24, 2009

The reason for this change is the current "negative" perspective for the sovereign rating for the Republic of El Salvador, which could affect the Issuer Default Rating for the long term for the three main banks in El Salvador in the case that the rating is reduced again in the country.

On June 18, 2009, Fitch reduced the sovereign rating for El Salvador to "BB" from "BB+" and maintained the perspective at "negative." At the same time, it affirmed the ceiling for the country of El Salvador at "BBB-" (see the comments available at www.fitchratings.com).

More on this topic

Bank of El Salvador Suffers From Increased Country Risk

August 2013

In mid-July Fitch Ratings downgraded to El Salvador from "BB" to "BB-" and only a day later downgraded the rating for the Banco Agrícola from "BBB-" to "BB +" and that of Davivienda from "BB to BB-" .

The downgrading of the country by international rating agencies has spread to private banks such as the Agrícola and Davivienda who also had their ratings downgraded.

Fitch changes outlook for El Salvador to negative

October 2008

Fitch Ratings has revised the Rating Outlook on El Salvador's long-term foreign and local currency Issuer Default Ratings (IDRs) to Negative from Stable.

The ratings are as follows:
Long-term foreign currency IDR at 'BB+'; Long-term local currency IDR at 'BB+'; Short-term foreign currency at 'B'; Country ceiling at 'BBB-'.

Costa Rica: Fitch forecasts deterioration of bank portfolios

April 2008

The accelerated growth of bank loans could result in a deterioration of portfolios due to a change in interest rate trends.

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 keeps BANPRO and BANCENTRO on Negative Rating Watch

April 2008

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.

The transfer of these funds from the banks that held these bonds is subject to the revocation of the judicial order that currently keeps the payments of these oblicgations suspended.

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Pacific Credit Rating El Salvador

Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
Phone: (503) 2266 9472

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