Fitch lowers La Hipotecaria bonds

Fitch Ratings said it lowered Banco La Hipotecaria, SA’s mortgage covered bonds to BBB- from BBB.

The lower rating follows Fitch’s downgrade of Panama's long-term issuer default rating to BBB- from BBB, considering that the sovereign rating constrains the covered bond program, the agency said.

Fitch noted that 45% of the residential mortgages in the cover pool are granted to civil servants and about 70% of the loans have subsidies from the Republic of Panama's government.

The outlook is negative.

© 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.