Fitch Ratings on Oct. 3 downgraded Chile-based Banco Consorcio's foreign and local currency short-term issuer default ratings to F3 from F2 and subsequently removed them from Under Criteria Observation.
The downgrade reflects Fitch's assessment of the bank's "bbb-" funding and liquidity factor score, which the rating agency deems as a weakness relative to the "bbb" viability rating given its higher funding concentration.
On May 2, Fitch introduced changes to its correspondence table between long- and short-term ratings, under which two new cusp points at A and BBB+ have been added to the existing three cusp points of A+, A- and BBB, where baseline or higher short-term ratings can be assigned.
