Fitch ratings roundup: Banesco, BBVA unit, BHD, BPD, Popular Bank

- Monday, May 30, 2011

Fitch ratings roundup: Banesco, BBVA unit, BHD, BPD, Popular Bank

Fitch has affirmed its national long and short-term ratings on Panamanian bank Banesco, and changed its outlook to positive from stable, a press release from the ratings agency reads.

The change in Banesco's outlook reflects the bank's efforts to consolidate its current business model, with an increased loan market share, while maintaining good credit metrics and a continued decrease in market risk exposure.

In addition, Fitch also took into account Banesco's sustained profitability and capitalization, favorably compared to that of its peers in terms of assets. If the bank is able to complete the above changes, Fitch could upgrade Banesco's ratings, the release reads.

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To read the full press release, in Spanish, go to this link

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Fitch also affirmed its national scale ratings on Banco BBVA Panamá, the local unit of Spanish banking group BBVA (NYSE: BBVA), with a stable outlook, the agency said in a separate press release.

The affirmation is based on the support of the parent company, its solid and consistent financial profile, favored by high operational efficiency, lower loan loss provisions and consistent intermediation margins.

To read the full press release, in Spanish, go to this link

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Fitch affirmed its ratings for the Dominican Republic's Banco BHD and its subsidiaries - including securities firm BHD Valores, SME-focused bank PyME BHD and Panama-based BHD International Bank - all with a stable outlook, a press release reads.

The affirmation is based on BHD's sustained profitability, good liquidity and asset quality management, as well as its adequate capital base. The affirmations on BHD's units are based on the operational and financial support of the parent.

To read the full press release, in Spanish, go to this link

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Finally, Fitch affirmed its national scale ratings on the Dominican Republic's Banco Popular Dominicano (BPD) and Panama's Popular Bank. The long-term national scale ratings on both banks have a positive outlook, Fitch said in a press release.

The affirmation is based on BPD's strong franchise in the local financial system and adequate asset quality, which is supported by its conservative risk profile and stable profitability. BPD is the largest private sector bank in the Dominican Republic.

The affirmation on Popular Bank's ratings is based on the support of its parent, BPD. Dominican financial group Grupo Popular in turn controls 98.5% of BPD.

To read the full press release, in Spanish, go to this link

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