trending Market Intelligence /marketintelligence/en/news-insights/trending/EkNWfbT7mxinx5-q4G3GPA2 content esgSubNav
In This List

Fitch lowers outlook on Ecuador's Banco Pichincha, Banco de la Producción

Blog

Insight Weekly: Unease roils markets; US likely to slip into recession; firms' cash ratios fall

Blog

Insight Weekly: Bank boards lag on gender parity; future of office in doubt; US LNG exports leap

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Podcast

Street Talk | Episode 99 - Higher rates punish bond portfolios, weigh on bank M&A


Fitch lowers outlook on Ecuador's Banco Pichincha, Banco de la Producción

Fitch Ratings on Jan. 15 revised its outlook on Banco de la Producción SA and Banco Pichincha C.A.'s ratings to negative from stable, following a similar outlook revision on Ecuador this month.

The rating agency said that the environment in which both banks are operating hampers their growth potential, profitability and internal capital-generation capacity. Fitch adds that "direct exposure to Ecuador through investment portfolios, constrain the banks' ratings to the sovereign's creditworthiness."

Fitch lowered its outlook on Ecuador to negative from stable as it warned against the country's relatively large financing needs and uncertain access to funding sources.

Meanwhile, the rating agency also affirmed the long- and short-term foreign currency issuer default ratings of both of the banks at B- and B, respectively. Their viability ratings were both affirmed at "b-" while their support ratings were affirmed at 5.