trending Market Intelligence /marketintelligence/en/news-insights/trending/lLTFv8i51CdOJc073rvxoA2 content esgSubNav
In This List

S&P revises outlook of 2 Bolivian banks to negative following sovereign action

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Automating Credit Risk Surveillance Using Statistical Models

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade


S&P revises outlook of 2 Bolivian banks to negative following sovereign action

S&P Global Ratings on Dec. 17 revised its outlook on the long-term issuer credit ratings of Banco Mercantil Santa Cruz SA and Banco Unión SA following a similar action on Bolivia's ratings.

The rating agency noted that it limits the banks' ratings at the sovereign rating because it does not consider that they can withstand a sovereign default scenario, given the banks' exposure to the country in the form of investments and loans.

The negative outlook on Bolivia reflects at least a one-in-three chance of a downgrade in the next six to 18 months if the country's external profile weakens amid ongoing political uncertainty.

The rating agency also affirmed the two banks' BB- long-term and B short-term ratings.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.