Ratings roundup: BancoEstado downgraded, BBVA Bancomer, HSBC unit

- Thursday, October 13, 2011

Ratings roundup: BancoEstado downgraded, BBVA Bancomer, HSBC unit

Moody's has lowered Chilean state bank BancoEstado's rating to C from C+ and the baseline credit assessment to A3 from A2 because of issues with its capitalization levels and mortgage loan portfolio.

"The downgrade reflects continued problem loan levels in the bank's large residential mortgage portfolio, as well as leaner pretax profitability and capitalization metrics relative to similarly rated banks in Chile and in the region," the agency said in a report.

BancoEstado is the third largest bank in Chile with total assets of some US$43bn and deposits of US$29bn as of June 30.

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To read the full report, go to this link

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Fitch has lowered Mexican bank BBVA Bancomer's outlook to negative from stable as a result of the agency's recent downgrade of its parent company, Spanish lender BBVA (NYSE: BBVA).

BBVA Bancomer is the country's largest financial group.

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

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Fitch also affirmed the long-term national scale ratings on the Costa Rican unit of HSBC (NYSE: HBC) at AAA due to support provided by its parent company. The outlook is stable, the agency said in a report.

HSBC Costa Rica is a midsized bank, commanding a 15.8% asset market share among private banks as of end-June. It mainly focuses on the real estate segment.

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