Ratings roundup: Tarjeta Naranja, BICE, Bank of Tokyo Mitsubishi unit

Wednesday, July 6, 2011

Fitch has affirmed Argentine credit card company Tarjeta Naranja's long and short-term local and foreign currency issuer default rating (IDRs) at B, as well as its national and debt ratings.

Tarjeta Naranja's ratings reflect strong growth, maintenance of its sound historical profitability, good asset quality and liquidity, and a satisfactory capital base, the agency said in a report.

They also reflect the benefits of belonging to the Tarjetas Regionales group (controlled by locally owned Banco Galicia), which has ample experience in the credit card business, as well as the potentially volatile operating environment in Argentina.

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To read the full report, go to this link


Fitch assigned n AA national scale rating to Chilean bank Banco BICE's upcoming US$120mn bonds.

The ratings are based on the bank's solid financial profile, its conservative lending and risk management policies and the resilience shown by its relatively diversified sources of revenues through periods of higher volatility.

The issue represents 2.7% of the bank's loans and 2.1% of its third party funding sources as of end-April. Banco BICE commands a 2.61% market share and is owned by the local Matte family.

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


Chilean ratings agency Humphreys has placed the deposits of the local unit of Japanese bank The Bank of Tokyo Mitsubishi (NYSE: MTU) "under observation."

The ratings action on The Bank of Tokyo Mitsubishi UFJ reflects the fact that its parent company could see its Aa2 global scale rating cut, as on May 31 it was placed under review for a possible downgrade.

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