S&P Global Ratings on May 22 affirmed its B long-term issuer credit rating on Visión Banco S.A.E.C.A. while revising its outlook to positive from stable.
The outlook revision reflects a possible upgrade in the next 12 months if the bank enhances its capital and earnings profile through a capital injection, with a risk-adjusted capital ratio consistently above 5% and all other credit factors remaining stable.
Meanwhile, the rating reflects the bank's leading market position and strong expertise in the microfinance segment in Paraguay, risk-adjusted capital ratio of 4.7% for the next 12-18 months and asset quality metrics that are still weaker than those of the banking system's average, given the bank's exposure to the microfinance and consumer businesses.
S&P also incorporates in the rating the bank's diversified and stable deposit base, due to a nationwide branch network, and its adequate liquidity.
The ratings are the same as the bank's "b" stand-alone credit profile, S&P said.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
