Moody’s rates Banco Hipotecario debt Baa1.ar

Moody’s Investors Service said it assigned a standalone baseline credit assessment of Caa1 to Banco Hipotecario SA, along with a global local-currency deposit rating of Caa1/not-prime, foreign-currency deposit rating of Caa2/not-prime, national scale local deposit rating of Baa1.ar and foreign-currency rating of Ba2.ar.

Moody’s also said it assigned B3(cr)/not-prime (cr) long- and short-term global counterparty risk assessments, along with a national scale foreign-currency debt rating of Baa1.ar to the series 5 debt issuance for $250 million.

The outlook is negative, in line with the negative outlook on Argentina’s Caa1 sovereign bond rating, the agency said.

The deteriorating operating environment is negatively affecting the business prospects of Argentina’s financial institutions, asset quality and earnings generation amid the continued economic downturn and high inflation, Moody’s said.

The Caa1 standalone baseline credit assessment takes into account the bank’s lending mix and its adequate capitalization in the context of high inflation and weak economic activity in Argentina, the agency said.

The rating also captures the bank’s high lending appetite and its large exposure to consumer loans, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.