Ratings roundup: Davivienda, Banco Itaú BBA, BDP

Thursday, November 3, 2011

Fitch has assigned a BBB- long-term issuer default rating (IDR) to Colombia's third largest lender, Banco Davivienda, with a stable outlook, the ratings agency said in a report.

The ratings are driven by the bank's well-established franchise, clear long-term strategy, sound asset quality and reserves, adequate risk management policies, improved capital base and consistent performance.

Fitch's view of Davivienda's creditworthiness is tempered by the bank's moderate concentration in deposits and modest efficiency, the report reads.

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Moody's has assigned a bank financial strength rating of B- to the corporate and private banking unit of Brazil's Itaú Unibanco (NYSE: ITUB), Banco Itaú BBA, which translates into a baseline credit assessment of A1.

The rating incorporates its established franchise as a wholesale and investment bank in the Brazilian market, and its solid risk management and controls, which reflect in good asset quality and market risk metrics.

It also derives from the bank's inherent loan concentration and earnings volatility that tend to constrain earnings stability.

Banco Itaú BBA is among the largest wholesale and investment banking businesses in Brazil, directly competing with subsidiaries of major global lenders and investment banks. The bank's primarily targets large Brazilian and international corporations operating domestically and in Latin America.

To read the full report, go to this link


Moody's has assigned first-time long and short-term global local currency issuer ratings of B1 and Not Prime to Bolivian development bank Banco de Desarrollo Productivo (BDP). The agency also assigned long and short-term national scale local currency issuer ratings of Aa2 and BO-1.

The bank's ratings derive from the assessment of the probability of very high dependence and strong support that exists between BDP and its shareholder, the Bolivian government, which owns an 80% stake in the bank.

BDP explicitly states that its mission is to support the public policies of the government, as described in the "National Development Plan" and which includes support to microfinance institutions and SMEs in an effort to boost the de-dollarization of the Bolivian economy.

BDP's baseline credit assessment of B2 incorporates its modest franchise value within the local financial industry, as suggested by a 2% market share in terms of assets and by a still limited track record. BDP started its operations in January 2007, succeeding Nacional Financiera Boliviana (NAFIBO).

La Paz-based BDP had assets of 1.3bn bolivianos (US$182mn) and 395mn bolivianos in equity as of end-June.