Moody’s puts Gilex, Banco GNB Sudameris, on review

Moody's Investors Service said it put on review for downgrade all the long-term ratings for Gilex Holding Sarl, the long-term ratings for Banco GNB Sudameris SA and the long-term ratings for BBVA Paraguay.

Moody’s made the decision after BBVA Spain entered a pact with Banco GNB Paraguay, a unit of Banco GNB Sudameris, to sell all its investment in BBVA Paraguay for $270 million cash.

Banco GNB Sudameris was put on review because the acquisition would expose the bank to Paraguay’s weaker operating conditions.

Gilex is the holding company for Banco GNB Sudameris and relies on its dividends. It plans to use $80 million of its $284 million to help fund the transaction.

BBVA Paraguay was placed on review because of Moody’s assessment of support from its affiliate BBVA Argentaria SA, which it would lose.

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