S&P shifts Banco Mercantil view to negative

S&P said it revised the outlook for Banco Mercantil Santa Cruz SA to negative from stable due to a potential weakening of its external profile and economic conditions during the next few months.

“The negative outlook on the bank mirrors that on Bolivia, which in turn reflects an at least one-in-three likelihood of a downgrade in the next 6-18 months if the country’s external profile weakens,” S&P said in a press release.

The agency affirmed the bank’s BB- rating.

S&P said it rates the bank at the sovereign rating because it doesn’t think Banco Mercantil can withstand a sovereign default.

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