Ratings roundup: Banco Agrícola, Su Casita deals, Banco G&T unit

- Tuesday, September 27, 2011

Ratings roundup: Banco Agrícola, Su Casita deals, Banco G&T unit

Fitch has upgraded the long-term issuer default rating (IDR) of El Salvador's largest lender, Banco Agrícola, to BBB- from BB+, driven by the bank's proven resilience to downturn economic cycles, as well as its enhanced dominant position in the local market.

Despite the recent severe stressed economic environment, Banco Agrícola continues to perform well, achieving reasonably stable core operating profitability. Asset quality remains sound, funding is essentially provided through a large and stable retail deposit base, and capital ratios showed sustained improvements, the agency said in a report.

Banco Agrícola controls 27.3% of the banking system's total deposits as of end- June. In May 2007, it was acquired by Colombia's largest bank, Bancolombia (NYSE: CIB).

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To read the full report, go to this link

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Fitch has taken rating actions on 11 residential mortgage-backed security (RMBS) transactions backed with loans originated by troubled Mexican housing lender Hipotecaria Su Casita.

The rating actions are driven on an individual basis analyzing the level of delinquencies, the impact of the primary servicer transfer on performance, and the financial structure of each transaction, the agency said in a report.

To read the full report, go to this link

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Fitch has upgraded the national scale long-term rating of the Panamanian subsidiary of Guatemala's Banco G&T Continental to A- from BBB-, based on the growing level of integration with and support from its parent company.

The agency also revised the lender's outlook to positive from stable, reflecting the positive trend in its main shareholder's financial profile, which could result in future ratings upgrades, Fitch said.

To read the full report, in Spanish, go to this link