Fitch ratings roundup: Banese, Banco Provincial, Banco de Chile bonds

- Tuesday, May 17, 2011

Fitch ratings roundup: Banese, Banco Provincial, Banco de Chile bonds

Fitch has assigned BBB+(bra) and F2(bra) long and short-term national scale ratings to Brazilian bank Banese, controlled by the Sergipe state government, with a stable outlook, the agency said in a press release.

The assigned national scale ratings reflect the bank's importance for the state's development, as well as its good business diversification and stable depositors' base. The agency also took into account Banese's strong lending expansion.

Partially offsetting Banese's ratings is its modest size, as well as and a "certain political influence" given its nature as a state bank.

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

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Fitch has affirmed its issue default ratings, as well as its national scale ratings, on Venezuelan bank BBVA Provincial, with a stable outlook, a separate press release reads.

Provincial's ratings reflect its above-average performance in a highly unstable operating environment, good profitability, asset quality and capitalization ratios based on a strong franchise. The agency also considered the bank's conservative risk control techniques and the support of its parent, Spain's BBVA (NYSE: BBVA).

To read the full report, go to this link

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Lastly, Fitch has assigned its AAA(cl) rating to Banco de Chile's (NYSE: BCH) planned new bond issuance, a separate statement reads.

The planned bond program - worth 24mn of Chile's inflation linked unit (523bn pesos, or US$1.11bn), the UF - will be issued in six tranches of 4mn UFs each, Fitch said.

The assigned ratings take into account Banco de Chile's operational improvement and strategic alliance with Citigroup (NYSE: C), which have resulted in the resiliency of its financial profile, enabling the bank to adequately manage the financial markets' volatility during and after the 2008-09 global financial crisis.

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