Moody\'s Investors Service today published
the rating results for banks in Bolivia as part of the application of its
refined joint default analysis (JDA) and updated bank financial strength
rating (BFSR) methodologies.
BFSRs evaluate the stand-alone or intrinsic financial strength of banks
without reference to external support factors. BFSRs are the starting
point of Moody\'s bank credit analysis, and are an important determinant
of Moody\'s bank deposit and debt ratings.
Moody\'s then uses its JDA methodology to incorporate the potential for
external support into a bank\'s local currency deposit rating. The
potential for external support can reduce the riskiness of a bank\'s
deposit and debt obligations; however, such support is often uncertain.
Moody\'s uses conservative support assumptions and a limited number of
support levels to ensure that sufficient weight is given to a bank\'s
intrinsic financial strength in its bank deposit and debt ratings.
Moody\'s uses deposit ratings to determine bank debt ratings based on its
notching guidelines for bank securities. Ratings for foreign currency
obligations are determined after considering Moody\'s country ceilings
for foreign currency ratings.
The methodologies are being implemented country by country, with results
being announced on a weekly basis. Results for those banks with a parent
bank located in another country where the methodologies have not yet been
implemented will be concluded at the same time as the parent.
Moody\'s completed the review on the ratings of the Bolivian banks. The
BFSRs of four Bolivian banks were upgraded, by one or two notches, as a
result of their improving financial fundamentals and evolving franchises.
The implementation of the JDA methodology also led to the lift in the
local currency deposit rating of six banks, by one or two notches.
Moody\'s has assigned support levels to banks in Bolivia using its support
guideline for highly dollarized countries. This guideline takes into
consideration the history of support for banks, the size, strength and
the fragmentation of the Bolivian banking system, as well as the extent
to which a high level of dolarization may limit Bolivia\'s ability to
support its banks.
Most of the national scale ratings, which are derived from the global
local currency deposit ratings, were also upgraded as a result of the
rise in deposit ratings.
Bisa Leasing´s local currency senior debt rating was upgraded by two
notches to Ba3, from B2, as a result of the upgrade of the BFSR of its
parent, Banco Bisa.
This press release lists the names of issuers in Bolivia whose ratings
have been changed. To view ratings changes and other documents
explaining Moody\'s bank rating methodologies, please go to
www.moodys.com/JDABanks.
The specific ratings changes are as follows:
Banco Mercantil Santa Cruz S.A.: The BFSR is raised to D from E+. The
Local Currency deposit rating is upgraded to Ba3 from B1. The Foreign
Currency deposit rating is unchanged at Caa1. The long term Local
Currency deposit rating in National Scale is upgrade to Aaa.bo from
Aa1.bo. The long term Foreign Currency deposit rating in National Scale
is affirmed at A1.bo.
Banco Solidario S.A. (Bolivia): The BFSR is upgraded to D from E+. The
Local Currency deposit rating is raised to Ba3 from B1. The Foreign
Currency deposit rating is affirmed at Caa1. The long term Local Currency
deposit rating in National Scale is upgraded to Aaa.bo from Aa1.bo. The
long term Foreign Currency deposit rating in National Scale is affirmed
at A1.bo.
Banco Bisa S.A: The BFSR is raised to D- from E+. The Local Currency
deposit rating is upgraded to Ba3 from B2. The Foreign Currency deposit
rating is affirmed at Caa1. The long term Local Currency deposit rating
in National Scale is raised to Aa1.bo from Aa2.bo. The long term Foreign
Currency deposit rating in national scale is upgraded to A1.bo from A2.bo.
Bisa Leasing S.A.: The Global Local Currency debt rating is raised to Ba3
from B2, in line with the rating of its parent, Banco Bisa. The long term
Local Currency debt rating in National Scale is raised to Aa1.bo from
Aa3.bo. The long term Foreign Currency debt rating is affirmed at B3. The
long term Foreign Currency debt rating in national scale is affirmed at
Aa3.bo.
Banco Nacional de Bolivia S.A.: The BFSR is raised to D- from E+. The
Local Currency deposit rating is upgraded to Ba3 from B2. The Foreign
Currency deposit rating is affirmed at Caa1. The long term Local Currency
deposit rating in National Scale is raised to Aa1.bo from Aa2.bo. The
long term Foreign Currency deposit rating in National Scale is affirmed
at A1.bo.
Banco Económico S.A. (Bolivia): The BFSR is affirmed at E+. The Local
Currency deposit rating is upgraded to B1 from B3. The Foreign Currency
deposit rating is affirmed at Caa1. The long term Local Currency deposit
rating in National Scale is raised to Aa2.bo from Aa3.bo. The long term
Foreign Currency deposit rating in National Scale is upgraded to A1.bo
from A2.bo.
Banco Ganadero S.A.: The BFSR is affirmed at E+. The Local Currency
deposit rating is upgrade to B1 from B3. The Foreign Currency deposit
rating is affirmed at Caa1. The long term Local Currency deposit rating
in National Scale is upgraded to Aa2.bo from Aa3.bo. The long term
foreign Currency deposit rating in National Scale is raised to A1.bo from
A2.bo.
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