Moody's rates Banco Industrial currency B1, Caa1

Moody's Investors Service said it assigned a long- and short-term global local-currency deposit ratings of B1 and not-prime, respectively, as well as long- and short-term foreign-currency deposit ratings of Caa1 and not-prime, respectively, to Banco Industrial SA.

The agency also said it assigned an Aa2.ar local-currency deposit rating and a Ba1.ar foreign-currency deposit rating to the bank on the Argentine national scale.

The outlook is stable.

The ratings derive from the bank's business model, which is centered in short-term unsecured lending to small- and medium-sized companies, mostly in the form of receivables discount, Moody's said.

As such, the bank's operation provides adequate cash flows and loan granularity, but requires a continuous commercial effort in order to frequently rebuild the loan book, together with adequate origination guidelines and controls to ensure asset quality, the agency said.

Moody's noted the bank's small market share in terms of loans and deposits in the Argentinean market and the strong competition that the bank faces.

© 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.