Fitch upgrades Multiple Leon

Fitch Ratings said it upgraded Banco Multiple Leon SA's long-term national subordinated debt to BBB(dom) from BBB-(dom) and affirmed its long-term foreign- and local-currency issuer default ratings at B- with a stable outlook, short-term foreign- and local-currency rating at B, viability rating at b-, support rating at 5, long-term national rating at BBB+(dom) with a stable outlook, short-term national rating at F2(dom) and support floor at No Floor.

Related entity Valores Leon's long-term national rating and long-term national senior debt rating were affirmed at BBB+(dom), and its short-term national rating was affirmed at F2(dom).

The agency said the upgrade of the bank's subordinated debt is in line with its methodology. The debt does not contain any equity component according to Fitch's methodology, so there is no possibility of deferring the interest payments in case of stress.

Banco Multiple Leon's ratings reflect its adequate liquidity ratios, its strengthened capital base and the operational support of its majority shareholder, the Leon family, the agency said.

Nevertheless, the bank's still volatile asset quality metrics and weak profitability ratios relative to similarly rated Latin American regional peers continue to limit its ratings, Fitch said.

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