Fitch cuts Liberbank debt

Fitch Ratings said it revised Liberbank, SA's outlook to positive from stable, and affirmed the bank's long-term issuer default rating at BB+ and viability rating at bb+.

At the same time, Liberbank's subordinated debt was downgraded to BB- and removed from under criteria observation to reflect the switch to a baseline notching of two notches for loss severity from the anchor rating under Fitch's new bank rating criteria published on Feb. 28.

“The positive outlook reflects progress in Liberbank's plan to further reduce the stock of problem assets, which include impaired loans and net foreclosed assets,” the agency said in a news release.

“This should help to further improve asset- quality metrics and reduce capital encumbrance to unreserved problem assets.”

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