Fitch lifts two Dominican banks

Following the upgrade of the Dominican Republic's sovereign rating, Fitch Ratings said it upgraded the issuer default ratings for Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples and Banco Multiple BHD Leon to BB- from B+.

The outlooks were revised to stable from positive.

On Nov. 18, Fitch upgraded the Dominican Republic's long-term foreign and local currency issuer default ratings to BB- from B+ with a stable outlook.

The upgrade reflects the country's continued strong growth momentum and rising per capita income, reduced external vulnerabilities and fiscal restraint through the 2016 election cycle.

Fitch said the positive actions reflect its recent upgrade of the Dominican Republic, as the banks' issuer default ratings were constrained by the sovereign's issuer default ratings.

In addition, the agency expects the current improvement in the Dominican operating environment to benefit the financial profiles of the banks.

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