TEXT - S&P revises Banco Agricola, Banco Davivienda Salvadoreno outlooks

Fri Dec 21, 2012 4:34pm EST

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(The following statement was released by the rating agency)

Overview
     -- On Dec. 21, 2012, we revised the outlook on El Salvador to negative 
from stable.
     -- We are revising our outlooks on El-Salvador based banks, Banco 
Agricola S.A. and Banco Davivienda Salvadoreno S.A. to negative from stable.
     -- The negative outlooks on both banks reflect that of the sovereign.

Rating Action
On Dec. 21, 2012, Standard & Poor's Ratings Services revised its long-term 
outlook on Banco Agricola and Banco Davivienda Salvadoreno to negative from 
stable.

Rationale
The rating action on both banks follows our outlook revision on El Salvador 
(please see "Republic of El Salvador Outlook Revised To Negative; 'BB-/B' 
Ratings Affirmed," published on Dec. 21, 2012 on RatingsDirect). Currently, 
the issuer credit ratings on both banks are limited by the foreign-currency 
rating on El Salvador. In this sense, the ratings continue to move in tandem 
with those of the sovereign.

Our issuer credit ratings on Banco Agricola continue to reflect its "strong" 
business position, "strong" capital and earnings, "adequate" risk position, 
"average" funding profile and "adequate" liquidity (as our criteria define 
these terms).

On the other hand the ratings on Banco Davivienda Salvadoreno reflect its 
"adequate" business position, "adequate" capital and earnings, "adequate" risk 
position, "average" funding profile and "adequate" liquidity.

Outlook
The negative outlooks on both banks reflect that of the sovereign. If there is 
a negative sovereign rating action on El Salvador, the ratings on Banco 
Agricola and Banco Davivienda Salvadoreno will also be downgraded.

Related Criteria And Research
     -- Republic of El Salvador Outlook Revised To Negative; 'BB-/B' Ratings 
Affirmed, Dec. 21, 2012
     -- Banco Agricola S.A, Dec. 19, 2012
     -- Banco Davivienda Salvadoreno S.A, Dec. 7, 2012
     -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
     -- Group Rating Methodology And Assumptions, Nov. 9, 2011
     -- Banking Industry Country Risk Assessment Methodology And Assumptions, 
Nov. 9, 2011


Ratings List
Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Banco Agricola S.A
Banco Davivienda Salvadoreno
 Counterparty Credit Rating             BB-/Negative/B     BB-/Stable/B
 Certificate Of Deposit                 BB-/B                

 (Caryn Trokie, New York Ratings Unit)
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