(The following statement was released by the rating agency)
NEW YORK, August 05 (Fitch) Fitch Ratings expects to assign the
ratings to Financiera de Desarrollo Territorial S.A.'s
--USD denominated five- to 10-year senior unsecured,
maturing 2024 'BBB(Exp)';
--COP denominated five- to 10-year senior unsecured,
maturing 2024 'BBB+(Exp,emr)'.
A list of FINDETER's current ratings follows at the end of this
The notes, for an amount of USD500 million or its equivalent in
(COP), will pay a fixed interest to be set at the time of
issuance. The maturity
will also be set at the time of issuance and interest payments
will be made
semi-annually - if the notes are denominated in USD - or
annually - if
denominated in COP, until maturity. The subscript - emr - was
added to the
rating of the local currency issuance to reflect the embedded
market risk of the
exchange rate fluctuation between the COP and the USD given that
will be denominated in COP while the settlement will be in USD.
The final rating is contingent upon the receipt of final
documents conforming to
information already received.
The notes will rank pari passu with the existing and future
obligations of FINDETER, other than senior unsecured obligations
statute or labor, tax and other obligations that are privileged
by law and
External Indebtedness guaranteed by the Republic of Colombia.
The notes will be
senior to FINDETER's existing and future subordinated debt to
its capital stock
and to any other instruments that may qualify as Tier I capital
KEY RATING DRIVERS
Fitch's current long-term foreign currency Issuer Default Rating
Findeter is 'BBB' and its local currency IDR is 'BBB+', both
with a Stable
Outlook. The IDRs are in line with the Colombian sovereign's
ratings, as Fitch
views FINDETER as an integral part of the government given its
role in providing
financing for infrastructure, investment projects and economic
FINDETER's strategic importance in Colombia's national
underpins Fitch's opinion of the government's willingness of
support, while the
sovereign's investment grade ratings underpin its capacity,
resulting in a
Support Rating of '2' and Support Floor of 'BBB'.
Fitch will rate the notes at the same level as Findeter's IDRs,
as the notes are
senior unsecured, unsubordinated obligations.
FINDETER will use the proceeds of the issuance of the notes for
corporate purposes. Fitch expects FINDETER's leverage to
increase slightly in
the short run and that continued growth and positive returns,
will allow the
entity to sustain adequate Fitch core capital levels.
The notes are sensitive to any changes in FINDETER's IDRs.
FINDETER'S IDRs are
sensitive to a change in the government's willingness or
capacity to provide
support, should it be needed.
FINDETER is a nationwide special official institution related to
the Ministry of
Finance and Public Credit that focuses on economic development.
institution's main shareholder is the government of Colombia
along with other
public regional shareholders.
Fitch currently rates Findeter as follows:
--Long-term foreign currency IDR 'BBB'; Outlook Stable;
--Short-term foreign currency IDR 'F2';
--Long-term local currency IDR 'BBB+'; Outlook Stable;
--Short-term local currency IDR 'F2';
--Support Rating '2';
--Support floor 'BBB';
--National Long Term Rating 'AAA(col)';
--National Short Term Rating 'F1+(col)'.
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Jan. 31,
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.
DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH