Fitch rates Banco Nacional de Costa Rica bond BB+

Fitch Ratings said it expects to assign a BB+ rating to Banco Nacional de Costa Rica's proposed senior unsecured $500 million Rule 144A and Regulation S bond issuance.

The tenor of the issuance is to be defined. The proceeds are expected to be used for short-term debt repayment and loan growth, Fitch said.

The bank's issuer default rating and the expected issuance rating are support driven, the agency said. Sovereign support for all state-owned banks is explicit in the national banking system law. According to this law, all state-owned banks have the guarantee and full collaboration of the state, the agency said.

The bank holds a leadership position in several business lines, including mortgage and commercial loans, the agency said. It has recently increased its exposure in the agricultural and energy sectors, Fitch said.

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