Moody's upgrades Banco del Istmo

Moody's Investors Service said it upgraded the long- and short-term foreign-currency deposit ratings of Panama-based Primer Banco del Istmo, SA to Baa2 and Prime-2, respectively, from Ba1 and Not Prime following the completion of HSBC's acquisition of Grupo Banistmo SA, the holding company for the bank. The D+ financial strength rating was affirmed.

This concludes the review for possible upgrade begun on July 21, and the outlook is stable.

HSBC acquired 99.98% of Grupo Banistmo in an all-cash tender offer that closed on Nov. 22.

The agency said the upgrade reflects its view that HSBC will provide the bank with a relatively high level of support, because of its controlling ownership, the expected addition of the HSBC brand to the group's activities in Central America and Colombia and Banco del Istmo fit and importance to HSBC's regional expansion strategy.

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