Fitch trims three Ecuadorian banks

Fitch Ratings said it downgraded the long-term issuer default ratings to CC from B- for the following banks: Banco Pichincha CA y Subsidiarias, Banco Guayaquil, SA and Banco de la Produccion SA y Subsidiarias.

These rating actions follow the recent downgrades of Ecuador’s long-term IDR to CCC from B- on March 19 and to CC from CCC on Wednesday.

“In Fitch’s view, the credit profiles of these banks are relatively sound in the context of their domestic market and compared with the Ecuadorian sovereign rating, as their ratios remain commensurate with the B category guidelines. Fitch also believes that these banks will probably retain their capacity to service their obligations even if the sovereign defaults, given their relatively moderate direct sovereign exposure and their good track-record in dealing with sovereign debt stress in the past, by maintaining reasonable funding and liquidity policies,” the agency said in a press release.

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