Moody's rates Bisa debt Ba2

Moody's Latin America Agente de Calificaci n de Riesgo said it assigned a Ba2 global foreign-currency debt rating and an Aaa.bo national scale foreign-currency debt rating to Bisa Leasing SA's expected Bs. 60 million issuance under its $40 million senior debt program. The outlook is stable.

Bisa Leasing's Ba2 global debt ratings, both in foreign and local currency, were placed on review for downgrade on March 17.

The agency said Bisa Leasing's Ba2 corporate family rating derives from its b1 standalone credit assessment and incorporates two notches of uplift as a result of Moody's assumption of a very high probability of support from its parent, Banco Bisa (Ba2). Banco Bisa's global local-currency deposit rating, which acts as an anchor to determine support to be provided to its subsidiary, was placed on review for downgrade as a consequence of a change in Moody's bank rating methodology affecting the way it assesses the capacity of a government to provide support to a bank in the event of stress.

The standalone credit profile of b1 reflects Bisa Leasing's monoline business structure and the small and developing leasing market in Bolivia, which is highly competitive, adding pressure to the entity's profitability margins, Moody’s said, adding that it also reflects risks related to its funding structure, which is heavily reliant on bonds issuances and interbank deposits.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.