S&P rates Global Bank loans BBB+

S&P said it assigned BBB+ ratings to Global Bank Corp.’s covered loan facility's tranche A and B loans.

The loan facility, which was granted by a group of lenders to Global Bank in December 2020 for up to $240 million, was designed to have similar characteristics to a typical covered bond transaction, and it is backed by a pool of personal loans granted to retirees and pensioners from the Caja del Seguro Social in Panama. The financing structure includes two floating-rate loans, S&P said.

“The ratings, which are two notches above the rating on Global Bank Corp., reflect the transaction's dual recourse structure and the credit enhancement, which is sufficient to withstand stress scenarios consistent with the assigned rating level,” S&P said in a statement.

The outlook is stable.

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