Moody's ups Bladex outlook to positive

Moody's Investors Service said it affirmed the D-minus bank financial strength rating of Banco Latinoamericano de Exportaciones SA ("Bladex") and changed the outlook to positive from stable. Moody's also affirmed Bladex's Baa3 long-term and Prime-3 short-term foreign-currency deposit and debt ratings with a stable outlook.

Moody's said the change in outlook is based on Bladex's improving financial fundamentals, particularly the increasing profitability from its core businesses. Bladex's management has made strides in repositioning the bank by collecting almost the entire problematic Argentine credit portfolio and by exploring new markets and value-added products, as well as by upgrading staff to fulfill those needs.

Affirmations of the Baa3 debt and deposit ratings for Bladex are based primarily on the controlling ownership and support of 23 central banks in Latin America and the Caribbean that have veto power over issues concerning the bank's corporate existence and mission, the agency said, as Bladex continues to enjoy preferential treatment as a creditor to the region.

Bladex had total assets of $3.2 billion, loans of $2.6 billion and equity of $617 million at Dec. 31.

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