Fitch acts on Guatemalan banks

Fitch Ratings said it took negative rating actions on Guatemalan banks and foreign related-companies following the downgrade of Guatemala's sovereign rating to BB- from BB and the downgrade of the country ceiling to BB from BB+.

Fitch downgraded the foreign currency long-term issuer default rating of Banco Agromercantil de Guatemala, SA to BB from BB+. Its outlook was revised to stable from negative.

Fitch also downgraded the foreign and local currency long-term issuer default ratings of Banco Industrial, SA, Banco de Desarrollo Rural, SA and Banco G&T Continental, SA to BB- from BB following sovereign rating action, and their viability ratings to bb- from bb. Fitch also downgraded Industrial's subordinated securities.

Banco de Desarrollo Rural Honduras, SA’s national ratings were affirmed and outlook revised to negative from stable, and Banco de los Trabajadores's foreign and local currency long-term issuer default ratings were affirmed at BB-, while its outlook was revised to negative from stable.

Financiera de los Trabajadores' national ratings and outlook mirror the rating actions of its parent's national ratings, reflecting the sensitivity of its financial profile to the deterioration of the operating environment due to the coronavirus crisis.

Fitch downgraded the national ratings for GTC Bank, Inc. and BI Bank, SA in Panama, as a result of their supporting companies' downgrade given Fitch's view that these banks have a relatively weaker creditworthiness compared with other issuers in Panama.

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