Ratings roundup: BBVA Continental, Banco Patagonia, NR Finance

Friday, June 17, 2011

Fitch has upgraded Peruvian bank BBVA Continental's long and short-term local currency issuer default ratings (IDRs) to A- from BBB+ and to F1 from F2, respectively, the ratings agency said in a report.

The bank's long-term local currency IDR was upgraded as, in Fitch's view, parent company BBVA's (NYSE: BBVA) propensity to support the bank is now stronger given its higher contribution to the Spanish bank's net income and strong growth prospects.

Fitch also hiked BBVA Continental's individual rating to B/C from C, following three years of sustained performance during which the bank weathered an economic slowdown and was able to perform well above average with high efficiency and profitability, while sustaining adequate asset quality, reserves and capital.

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BBVA Continental is Peru's second largest bank, with a market share of about 23% of assets. Holding Continental (which is 50-50 owned by BBVA and local holding Grupo Brescia) controls 92.2% of the bank.

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


Standard & Poor's (S&P) has affirmed its B counterparty credit rating on Argentine bank Banco Patagonia. The outlook remains stable, the agency said in a report.

S&P's ratings on Banco Patagonia primarily reflect the risk inherent in operating in Argentina's market, and the ratings on the country constrain the bank's ratings. The bank faces the challenge of increasing its still-low market share in the local financial system.

"However, the bank's good financial performance, with healthy asset quality, above-average profitability and good liquidity, somewhat mitigate these weaknesses," S&P credit analyst Sebastián Liutvinas wrote.

Banco Patagonia provides financing mainly to individuals and small SMEs with a focus on the country's provinces. It had total assets of 15.5bn pesos (US$3.8bn) as of March 31, which represents a 5.1% market share among privately owned banks.

Brazil's BB, Latin America's largest bank by assets, owns a 51% stake in Banco Patagonia.

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


Moody's has confirmed NR Finance de México's local national scale long-term debt rating at Aa1. The outlook is now stable. The action concludes the review for possible upgrade initiated March 7, the ratings agency said in a report.

The move follows a similar action taken on the company's parent, Nissan Motor Acceptance Corporation (NMAC), the finance unit of Japanese car-making giant Nissan, whose Baa2 rating was also confirmed.

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

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