Fitch gives Daycoval notes BB

Fitch Ratings said it assigned a final BB foreign-currency long-term rating to $300 million of senior notes of Banco Daycoval SA with interest payable semiannually and principal due at maturity in March 2015.

The final rating assigned to Daycoval's issuance reflects Daycoval's issuer default ratings and ranks equal as other senior unsecured debts. This issuance is part of a euro medium-term notes program of up to $1 billion and its proceeds shall be used to extend the bank's funding structure and to enable new business generation, the agency said.

The ratings reflect its consistent track record of profitability, which compares it well regionally, despite operating with low leverage, Fitch said. The ratings also consider management's ability to adjust during downturns, the agency said.

On the other hand, the ratings consider the bank's medium size, concentration of assets and liabilities and the challenge of seeking more diversified and longer-term funding channels on top of higher diversification of its revenue sources, Fitch added.

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