Moody’s gives Banco FIE debt Ba3/Aa2.bo

Moody's Latin America said it assigned a Ba3 global scale debt rating and a Aa2.bo national scale debt rating to Banco FIE SA's second takedown under its senior debt program of Bs. 600 million.

The issuance, for up to Bs. 200 million, will be split into two different classes due in 1,620 days (class A) and 2,340 days (class B).

The outlook for the global scale rating is negative, in line with the negative outlook on Bolivia's government bond rating. The national scale rating carries a stable outlook.

Moody’s said the ratings reflect Banco FIE’s well-established position among Bolivian microfinancers, which supports its historically robust interest margins.

However, Banco FIE has sought to diversify its business model by continuing to bank its customers as they move up the income ladder and graduate to small and medium-sized companies (SMEs).

The ratings also consider Banco FIE’s manageable asset risk indicators, healthy reserve coverage and capital levels, the agency said. These strengths more than offset its modest total liquidity and pressures on profitability.

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