Ratings roundup: Caribbean Development Bank, Banco Security, Metrópolis

Wednesday, September 21, 2011

S&P has affirmed its AAA long-term and A-1+ short-term issuer credit ratings on the Caribbean Development Bank (CDB). The outlook remains stable, the agency said in a report.

"The rating reflects CDB's capital adequacy, well-performing asset quality and our expectation that borrowing members will continue to treat CDB as a preferred creditor," S&P credit analyst Kelli Bissett wrote.

"On the downside, we could lower the rating if the bank's capital adequacy were to decline, if the quality of the loan portfolio were to deteriorate materially, or if the borrowing members fail to afford the bank preferred-creditor treatment," the report reads.

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To read the full report, go to this link


Chilean ratings agency Feller Rate has affirmed local lender Banco Security's solvency rating at AA- and maintained all its other ratings, as well as its stable outlook.

Banco Security's solvency rating is based on its healthy asset quality portfolio and conservative risk management, which somewhat offset its relatively tight capital and lower margins, as it mainly focuses on lower spread loan segments, the agency said in a report.

The agency also took into account the support provided by its parent company, local financial holding company Grupo Security.

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


Moody's has upgraded the local currency national scale rating of Argentine finance company Metrópolis to A3 from Baa1. All the other ratings, as well as the company's stable outlook, were affirmed, the ratings agency said in a report.

The rating action reflects Metrópolis' improving franchise positioning and outlook in the context of a very modest market share and small, niche business franchise.

"However the transition risk evaluated in the first-time rating due to the acquisition of Tutelar operation has been reduced. The Tutelar franchise had liquidity problems, as well as poor granularity in terms of loans and deposits," the report reads.

Since Metrópolis took control of Tutelar, it has increased its asset levels and diversified its loan book and deposit base.

To read the full report, go to this link