Moody’s shifts Gilex, GNB views to negative

Moody’s said it confirmed its ratings for Gilex Holding SA, including its B2 senior secured rating, and its lead bank Banco GNB Sudameris SA, but changed their outlook to negative from under review.

The rating actions follow the completion of Banco GNB Paraguay SA’s acquisition of BBVA Paraguay announced Friday. GNB Paraguay is a subsidiary of GNB Sudameris.

For GNB Sudameris, the outlook reflects downward pressures on its baseline credit assessment derived from the bank’s increased exposure to Paraguay’s weaker operating conditions, which will now account for 36% of GNB Sudameris’ loans, doubling its previous 17% exposure to that country, Moody’s said.

The ratings confirmation and negative outlook for Gilex, GNB Sudameris’ holding company, follows its subsidiary, the agency said.

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