(The following statement was released by the rating agency)
-- On Dec. 21, 2012, we revised the outlook on El Salvador to negative
-- 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.
On Dec. 21, 2012, Standard & Poor's Ratings Services revised its long-term
outlook on Banco Agricola and Banco Davivienda Salvadoreno to negative from
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
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.
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 Affirmed; CreditWatch/Outlook Action
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)