Ratings roundup: BBVA Colombia, Compartamos, Santander unit's bonds

Monday, July 18, 2011

Moody's has assigned BBVA Colombia a first time D+ bank financial strength rating (BFSR), Baa1/Prime-2 long and short-term local currency deposit ratings, and Baa3/Prime-3 long and short-term foreign currency deposit ratings.

The ratings reflect the bank's diversified universal banking franchise, which is supported by significant retail operations and good access to core funding. They also incorporate the stability of its financial fundamentals, particularly profitability and capitalization as well as adequate risk management, the agency said in a report.

BBVA Colombia, the country's fourth largest bank, is a unit of Spain's BBVA (NYSE: BBVA).

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

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


Fitch has upgraded Mexican lender Banco Compartamos' long-term counterparty credit ratings to AA from AA- on a national scale.

The hike reflects Compartamos' improvements in its funding structure as well as its consistent and solid financial performance, broad franchise in the microfinance segment and robust capitalization, the ratings agency said in a report.

Fitch also took into consideration the bank's highly concentrated revenue structure as well as pressures on its operating profitability related to higher credit costs and the challenge of maintaining its credit profile following its expansion into other Latin American countries.

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


Fitch also assigned a AA national scale rating to Santander Chile's (NYSE: SAN) new line of 30-year subordinated bonds worth 7mn UF inflation-linked units (a total of 219bn pesos or US$473mn).

The rating is based on support provided by the parent company, Spain's Santander (NYSE: STD), as well as its solid profitability, healthy asset quality, leading market position and good capital adequacy ratios.

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