Fitch lowers Banco Pichincha, Produbanco

Fitch Ratings said it affirmed Banco Pichincha CA y Subsidiarias's and Banco de la Produccion SA y Subsidiarias's (Produbanco) long-term foreign-currency issuer default ratings at B-.

The outlooks on the companies were revised to negative from stable.

The negative outlook on Pichincha and Produbanco follows the recent revision of Ecuador's outlook to negative from stable, Fitch said.

The operating environment limits the banks' potential growth, profitability and internal capital generation capacity, the agency said.

Fitch said the banks' direct exposure to Ecuador constrains the ratings.

Bank Pichincha and Produbanco's ratings are highly influenced by Ecuador's operating environment and risk appetite, the agency said.

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