Moody's could cut Latin American banks

Moody's Investors Service said it the ratings assigned to subordinated debt issued by Banco de Chile, Bancolombia SA, Banco Davivienda SA, Banco GNB Sudameris SA, Banco de Credito del Peru, Banco Internacional del Peru - Interbank and Industrial Subordinated Trust that currently have systemic support incorporated in their ratings on review for downgrade.

All other ratings and outlooks remain unaffected by these actions.

Moody's said the actions reflect its opinion that the global trend toward imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors.

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