S&P lowers Bladex view to negative

S&P said it revised the outlook on Banco Latinoamericano de Comercio Exterior, SA (Bladex) to negative from stable.

The revision reflects the possibility of a downgrade within the next two years if Mexico's negative economic risk trend materializes into a weaker score or if the bank's exposures to higher risk countries grow, S&P said.

The agency also affirmed the BBB debt rating on the bank's $2.25 billion senior unsecured medium-term notes multi-currency program, as well as the national scale mxAAA issue-level rating on the bank.

The ratings reflect the bank's sound business position as a key player in trade finance in Latin America, S&P explained.

The bank has a strong track record of stable revenues and geographic diversity within the region, which partly offsets the relatively high single-name concentrations in its loan book, the agency said.

Panama's industry risk reflects an expectation that the country's regulatory framework will continue improving in 2019 as it reduces the gap with international regulatory standards, S&P said.

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