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.