S&P's Banco Hipotecario ratings unaffected

Standard & Poor's said its ratings on Banco Hipotecario SA (B/stable) will not be affected by the increase in the amount of the bank's new note to $250 million from $200 million, rated B on April 6. The new notes, issued under the bank's $1.2 billion senior unsecured global medium-term note program, will bear interest at a fixed rate of 9¾% and have bullet maturity in 2016.

S&P said the issuance is part of a liability management initiative that will allow Banco Hipotecario to expand its loan portfolio without damaging its currently high liquidity position, as well as to retire part of the debt issued in the context of its debt restructuring in 2004.

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