S&P: Banco Davivienda on watch

Standard & Poor's said it placed Banco Davivienda SA's BBB- long-term and A-3 short-term issuer credit ratings on CreditWatch with negative implications.

The CreditWatch placement follows news that Davivienda has reached an agreement to acquire HSBC Holdings plc's subsidiaries in El Salvador, Costa Rica and Honduras, S&P said.

The agency said it expects this transaction to be closed by the fourth quarter of 2012, subject to the respective countries' regulatory approval.

The main concern is the bank's capitalization, which is already assessed as moderate, S&P said.

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