Fitch upgrades ProCredit's Central American units on increased parent support

Monday, August 1, 2011

Fitch has raised the national long-term debt issuer ratings on the three Central American subsidiaries of German microlender ProCredit Holding on stronger support from the parent company.

The rating of ProCredit Nicaragua was raised to AA+ from AA-, while ProCredit Honduras and ProCredit El Salvador both saw their ratings go to AA+ from AA. The outlook for all three is stable.

The upgrades reflect the combined US$23mn in capital injections the three national subsidiaries have received from their parent over the past two years to counter the financial crisis, as well as permanent strategic and technical support, Fitch said in a statement.

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"The ratings of these entities would be lower without ProCredit Holding's support, given that their individual performance remains very weak," the agency noted.

ProCredit Holding, which also operates in four South American countries, is rated by Fitch on the international level at BBB-.

To read the full statement, in Spanish, go to this link.