October 19, 2017 / 7:09 PM / a year ago

Fitch Affirms BICSA's L-T IDR at 'BB'; Outlook Stable

(The following statement was released by the rating agency) MONTERREY, October 19 (Fitch) Fitch Ratings has affirmed Banco Internacional de Costa Rica, S.A.'s (BICSA) Long- and Short-Term Foreign Currency Issuer Default Ratings (IDRs) at 'BB' and 'B', respectively, following the downgrade of Banco de Costa Rica's (BCR; BICSA's main shareholder) Viability Rating (VR) and the affirmation of its support-driven IDRs. The Rating Outlook of the long-term ratings is Stable. BICSA's National scale and support ratings were also affirmed, while no rating action has been taken on the VR. A full list of rating actions follows at the end of this release. KEY RATING DRIVERS IDRS, National-Scale and Support Ratings BICSA's IDRs are driven by the support it would receive, if needed, from its shareholders. BICSA is a subsidiary of both BCR and Banco Nacional de Costa Rica (BNCR), which own 51% and 49% of BICSA, respectively. Fitch believes that BICSA is core to its parents given the significant role that the bank plays to its owners' regional objectives, and the shared reputational risk given their integration. Therefore, the ratings of BICSA are equalized with its parents'. The affirmation of the bank's Support Rating reflects Fitch's view that the probability of support remains unchanged. BCR's and BNCR's long-term IDRs of 'BB'/Outlook Stable are support-driven an equalized to the Costa Rican sovereign in view of an explicit guarantee. Fitch believes that the parent's IDRs reflect their ability to support BICSA. In 2016, BICSA received support from both BCR and BNCR to face liquidity concerns at that time, in the form of temporary deposits and asset sales. Also, both banks have active representatives in BICSA's board of directors and other operative committees. RATING SENSITIVITIES IDRS, National-Scale and Support Ratings As the IDRs, Support, and national-scale ratings are driven by the support of BCR and BNCR, any changes in the ratings of its parents would result in similar actions to BICSA's respective ratings. The IDRs and support ratings could be downgraded if Fitch perceives a diminished strategic importance of the bank to its parents, or if the capacity or willingness for support changes. National-scale ratings are local relativities of creditworthiness and, therefore, could potentially change depending on how BICSA's IDRs compare to other rated entities in Panama. The rating actions are as follows: Fitch has affirmed the following ratings: --Foreign currency Long-Term IDR at 'BB'; Outlook Stable; --Foreign currency Short-Term IDR at 'B'; --Support Rating at '3'; --National Long-Term Rating at 'A+(pan)'; Outlook Stable; --National Short-Term Rating at 'F1(pan)'; --Senior unsecured debt National Long-Term Rating at 'A+(pan)'; --Senior unsecured debt National Short-Term Rating at 'F1(pan)'. No action was taken on the following ratings: --Viability Rating of 'b+'. Contact: Primary Analyst Ricardo Aguilar Associate Director +52 81 83999124 Fitch Ratings Prol. Alfonso Reyes 2612, Edificio Connexity Piso 8 Col. Del Paseo Residencial 64920 Monterrey, N.L., Mexico Secondary Analyst Mario Hernandez Associate Director +503 2516-6614 Committee Chairperson Alejandro Garcia Managing Director +1-212-908-9137 Adjustment to Financial Statements: Intangibles, deferred tax assets and other deferred assets were deducted from the Fitch Core Capital, as Fitch believes those are non-loss absorbing assets. Media Relations: Benjamin Rippey, New York, Tel: +1 646 582 4588, Email: benjamin.rippey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE 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 EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below