Ratings On Andorra Affirmed At 'BBB-/A-3'; Off CreditWatch On Banca Privada d'Andorra Resolution Progress; Outlook Neg

OVERVIEW In March of this year, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) named Banca Privada d'Andorra (BPA) a foreign financial institution of primary money laundering concern. In our opinion, the Andorran authorities have responded by taking important steps to intervene in BPA's operations to contain any contagion to the financial system and the broader economy. Consequently, we are affirming our 'BBB-/A-3' ratings on Andorra and removing them from CreditWatch with negative implications, where we placed them on March 12, 2015. The negative outlook reflects possible execution risks associated with the bank resolution agency AREB's plan for BPA, as well as broader stability risks stemming from Andorra's large domestically owned financial services sector. RATING ACTION On

...Overview in March of this year, the U.S. Department of the Treasury's Financial Crimes + enforcement Network (FinCeN) named Banca Privada d'Andorra (BPA) a foreign financial institution of primary money laundering concern. in our opinion, the Andorran authorities have responded by taking important steps + to intervene in BPA's operations to contain any contagion to the financial system and the broader economy. Consequently, we are affirming our '###-/A-3' ratings on Andorra and removing + them from Creditwatch with negative implications, where we placed them on March 12, 2015. The negative outlook reflects possible execution risks associated with the bank + resolution agency AreB's plan for BPA, as well as broader stability risks stemming from Andorra's large domestically owned financial services sector. rATiNg ACTiON On June 24, 2015, Standard & Poor's ratings Services affirmed its '###-/A-3' long and short-term sovereign credit ratings on the Principality of Andorra and removed them from...

Ratings Action