S&P lowers three Guatemalan banks

S&P said it lowered its long-term issuer credit ratings on Banco Industrial SA (BI), Banco G&T Continental SA (Banco G&TC) and Banco Agromercantil de Guatemala SA (BAM) to BB- from BB.

At the same time, S&P affirmed its short-term ICRs on the banks at B.

S&P is also lowering its issue-level rating on Intertrust SPV (Cayman) Ltd.'s $300 million senior notes due April 10, 2019, which BAM guarantees, to BB- from BB. The outlook on BI, Banco G&TC, and BAM is now stable.

“We revised our BICRA score on Guatemala (BB-/stable/B) to group 7 from 6 as a result of our revision of the economic risk score to 8 from 7. The latter reflects our perception of weaker economic resilience and increasing economic imbalances, which lower the Guatemalan banks' ability to withstand external shocks,” S&P said in a news release.

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