Fitch rates Global Bank bond BBB-

Fitch Ratings said it assigned a rating of BBB- to the $85 million floating-rate bond issued by Panama-based Global Bank Corp.

The sufficient overcollateralization level provided for the consumer-loans pool of 140% (first year) and 150% (second year and after) allows Fitch to assign a rating that is two notches higher than the issuer default rating. The collateral pledged to the benefit of the bondholder, in case any termination event occurs, is composed of consumer loans granted to retirees.

The rating is also based on the bank's credit quality and the agency's expectation that the value of the collateral to represent no less than 70% of the outstanding amount of the notes in stress scenarios.

Fitch also noted the strength of the legal structure over other forms to provide guarantees based on the Panamanian law.

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