Fitch assigns RR4 to Nacional de Costa Rica notes

Fitch Ratings said it affirmed Banco Nacional de Costa Rica's senior unsecured notes at B+ and assigned a recovery rating of RR4.

The bank has two issuances of $500 million each.

The first issue has an interest rate of 5 7/8% due April 25, 2021.

The second issue has an interest rate of 6 3/8% due Nov. 1, 2023.

The ratings are aligned with the bank's foreign-currency long-term issuer default rating of B+ with negative outlook.

The negative outlook is aligned with the negative outlook on the sovereign ratings, Fitch said.

The senior unsecured notes are rated at the same level as the bank's issuer default rating, which are driven by support from the sovereign for all state-owned banks in Costa Rica, the agency said.

According to law, all unsubordinated liabilities of state-owned banks are fully guaranteed by the government of Costa Rica in the event of a bank's liquidation, Fitch said.

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