Fitch downgrades Bantrab

Fitch Ratings said it downgraded Banco de los Trabajadores’s (Bantrab) long-term issuer default ratings to B+ from BB-.

The long-term national scale ratings of Bantrab and Financiera de los Trabajadores (Fintrab) and the national scale insurer financial strength of Aseguradora de los Trabajadores also were downgraded to BBB(gtm) from A(gtm).

Bantrab's issuer default ratings, viability rating and national ratings all were downgraded as the capacity for continued timely payment on the bank's financial liabilities has materially declined, Fitch said.

The agency also said it expects the November 2016 coupon to be paid on time since these funds have already been transferred to the trustee.

The negative watch was maintained because Fitch said it believes that Bantrab's correspondent bank relationships could continue to suffer and deposit instability could increase, S&P said.

This could have a negative effect on its funding and liquidity profile as well as the bank's ability to make future payments to bondholders, the agency said.

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