* DBRS upgraded Argentina's short-term foreign and local currency issuer ratings to R-5 from selective default and placed the short-term ratings under review with negative implications. DBRS had downgraded Argentina in August after the sovereign said it would defer on certain short-term debt obligations. The sovereign is now making payments in line with a revised payment schedule, prompting the upgrade.
* Banco do Brasil SA and UBS Group AG will reportedly finalize an investment banking joint venture as soon as October, Reuters reported, citing sources familiar with the matter. Under the deal, Banco do Brasil's investment banking unit will merge with UBS' Brazil division. The Brazilian bank had said in a filing it is in talks with potential partners for its investment banking unit.
MEXICO AND CENTRAL AMERICA
* Mexican financial technology company Konfio Ltd acquired a $100 million credit line from Goldman Sachs Group Inc., which will help the fintech grant over $250 million of loans to small and medium-sized enterprises over the next 12 months, Bloomberg News reported. Konfio also expanded another existing loan with Victory Park Capital for $150 million, Reuters reported separately.
* The consumer loan portfolio of Scotiabank Inverlat SA Institución de Banca Múltiple has seen continued double-digit growth despite stagnant economic growth in Mexico, El Economista reported, citing bank executives. One executive said that consumer credit at the bank has not stopped growing, which was attributed to research into targeted markets. Another said the loan book had expanded by between 12% and 15%, a considerable difference from an average 6% growth in the sector.
* Mexican President Andrés Manuel López Obrador forwarded a 2020 budget proposal, with a 0.7% primary fiscal surplus forecast, The Wall Street Journal reported. Finance Minister Arturo Herrera noted that about 60% of next year's budget has already been earmarked, such as for pension payouts and for aid to state oil firm Pemex, Reuters reported. López Obrador also promised he would not raise taxes with the new budget.
* Mexico's Finance Ministry forecasts the central bank to lower its monetary policy rate to 7% in 2020 from the current 8%, El Financiero reported citing an official government economic policy document.
* Spain-based Banco Bilbao Vizcaya Argentaria SA is expected to issue debt worth up to US$750 million through its Mexican subsidiary before the end of 2019, Diario Expansión reported. The objective is to shore up BBVA Mexico's liquidity and solvency.
CARIBBEAN
* Hurricane Dorian could generate costs of between US$1.5 and US$3 billion to Caribbean insurance companies, Dow Jones Newswires reported, citing calculations from consultancy firm AIR Worldwide.
BRAZIL
* A measure by Brazil's central bank to allow credit cooperatives to issue local currency banknotes is credit positive for the country's cooperatives as they will be able to diversify and expand their funding sources, Moody's said. "The new measure will also help cooperatives lengthen the tenor of their funding books, enabling them to offer longer-term credit to their members and to compete with banks across a greater range of products," the rating agency added.
* Brazilian payment processor Cielo SA signed a deal with credit card services company Elo Serviços SA, to whom it will provide payment capture, processing and routing services, among others. The contract, which has an indefinite term, is valued at 100 million reais.
* Banco ABC Brasil SA said a group of shareholders divested 5,257,813 preferred shares, equivalent to a 4.83% stake, in the bank, according to a regulatory filing.
* Banco Bradesco SA cut its estimate for Brazil's 2020 GDP growth estimate for 2020 to 1.90% from 2.20%, mainly due to the implications of the trade war between the United States and China, Folha de S.Paulo reported. The bank maintained the estimate for this year at 0.8%.
ANDEAN
* Banco de Crédito del Perú said it received about $425.4 million of valid tenders in its offer to purchase its 5.375% outstanding senior notes due 2020. The Peruvian bank previously said it planned to repurchase up to $800 million of the 5.375% notes.
* Lawmakers from small opposition parties in Venezuela have backed Juan Guaido as head of Congress in 2020, Reuters reported. Under a previous agreement, control of the legislature would have fallen to a coalition of 17 small parties. A number of countries have recognized Guaido as interim head of Venezuela after he challenged the presidency of Nicolas Maduro. Venezuela's constitution reportedly calls for the head of the National Assembly to become president in case of a presidential vacancy.
* Middle East & Africa: Fawry eyes new markets; Shuaa to sell units; Access Bank H1 income up YOY
Pablo Jiménez Arandia contributed to this article.
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