S&P affirms Banco Schahin

Standard & Poor's said it affirmed its B/B counterparty credit rating on Banco Schahin SA and removed the rating from CreditWatch positive, where it was placed June 11.

The outlook is stable.

The agency said that the ratings on Schahin reflect the comparatively worse asset quality than peers given the higher delinquency of the remaining wholesale portfolio, the intrinsic risks of a midsize bank facing the challenge of growing its funding base and profitability pressure given interest results and margin reduction.

These risk factors are offset by the bank's coherent strategy to generate more retail business while gradually reducing the weight of loans to small and midsize enterprises, the bank's strong liquidity position helped by alternative funding sources and its diversified product base, S&P noted.

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