Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6' - S&P Global Ratings’ Credit Research

Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6'

Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6' - S&P Global Ratings’ Credit Research
Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6'
Published Oct 19, 2017
9 pages (3019 words) — Published Oct 19, 2017
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On Oct. 18, 2017, we lowered our long-term rating on Guatemala to 'BB-' from 'BB' on lower economic growth prospects and recurrent political instability. Economic pressures are acting as a drag on the banking system. As a result, we revised our Banking Industry Country Risk Assessment (BICRA) on Guatemala to group '7' from group '6' after revising our economic risk score to '8' from '7', to reflect recurrent political instability and weak government institutions that are impeding Guatemala's economic growth. As a result, we revised downward the anchor for banks operating in Guatemala to 'bb' from 'bb+'. Therefore, we revised the stand-alone credit profile (SACP) on Banco Industrial and Banco G&T Continental to 'bb' from 'bb+', and on Banco Agromercantil

  
Brief Excerpt:

...+ On Oct. 18, 2017, we lowered our long-term rating on Guatemala to '##-' from '##' on lower economic growth prospects and recurrent political instability. + Economic pressures are acting as a drag on the banking system. As a result, we revised our Banking Industry Country Risk Assessment (BICRA) on Guatemala to group '7' from group '6' after revising our economic risk score to '8' from '7', to reflect recurrent political instability and weak government institutions that are impeding Guatemala's economic growth. + As a result, we revised downward the anchor for banks operating in Guatemala to '##' from '##+'. + Therefore, we revised the stand-alone credit profile (SACP) on Banco Industrial and Banco G&T Continental to '##' from '##+', and on Banco Agromercantil de Guatemala to '##-' from '##'. We also lowered our long-term issuer credit ratings (ICRs) on these banks to '##-' from '##'. In addition, we affirmed our 'B' short-term ICRs on the banks. + The outlook on Banco Industrial, Banco...

  
Report Type:

Research Update

Issuer
GICS
Diversified Banks (40101010)
Sector
Global Issuers, Structured Finance
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6'" Oct 19, 2017. Alacra Store. May 25, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Three-Guatemalan-Banks-Downgraded-To-BB-From-BB-On-Similar-Action-On-Sovereign-BICRA-Revised-To-Group-7-From-6-2173532>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Three Guatemalan Banks Downgraded To 'BB-' From 'BB' On Similar Action On Sovereign, BICRA Revised To Group '7' From '6' Oct 19, 2017. New York, NY: Alacra Store. Retrieved May 25, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Three-Guatemalan-Banks-Downgraded-To-BB-From-BB-On-Similar-Action-On-Sovereign-BICRA-Revised-To-Group-7-From-6-2173532>
  
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