Research Update: Banco Mercantil Santa Cruz And Banco Union Downgraded To 'B+' From 'BB-' On Similar Action On Bolivia, Outlooks Stable

On April 17, 2020, S&P Global Ratings lowered the long-term foreign and local currency sovereign credit ratings on Bolivia to 'B+' from 'BB-' because the impact of the COVID-19 pandemic and lower global energy prices, coupled with less room to maneuver on policy ahead of this year's election, has further eroded Bolivia's once large external buffers, resulting in a weaker external profile. Following the sovereign action, we're lowering our long-term ratings on domestic lenders, BMSC and Banco Union, to 'B+' from 'BB-' because the sovereign ratings limit those on the banks. The outlooks on the banks are now stable. We're also revising downward our Banking Industry Country Risk Assessment (BICRA) on Bolivia because risks in the domestic financial system have

...- On April 17, 2020, S&P Global Ratings lowered the long-term foreign and local currency sovereign credit ratings on Bolivia to 'B+' from '##-' because the impact of the COVID-19 pandemic and lower global energy prices, coupled with less room to maneuver on policy ahead of this year's election, has further eroded Bolivia's once large external buffers, resulting in a weaker external profile. - Following the sovereign action, we're lowering our long-term ratings on domestic lenders, BMSC and Banco Union, to 'B+' from '##-' because the sovereign ratings limit those on the banks. The outlooks on the banks are now stable. - We're also revising downward our Banking Industry Country Risk Assessment (BICRA) on Bolivia because risks in the domestic financial system have increased due to the economic lockdown resulting from the pandemic....

Research Update