S&P: Banco Mercantil Santa Cruz view to negative

Standard & Poor's said it revised the outlook on Banco Mercantil Santa Cruz SA to negative from stable.

The agency also said it affirmed the bank's BB- long-term and B short-term issuer credit ratings. The bank's stand-alone credit profile is BB-.

The negative outlook reflects the potential for the new banking law to undermine the bank's business stability, asset quality metrics and internal capital generation, S&P said.

Although S&P said it expects the bank to continue offering a wide variety of products and diversified business lines, the new law could pressure the bank's net interest margins and could increase its credit risk profile.

The agency said it could downgrade the bank if the bank's asset quality metrics or business stability and strategy execution deteriorate.

The ratings reflect the bank's strong business position, weak capital and earnings, adequate risk position, average funding and adequate liquidity, S&P 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.