S&P Global Ratings on Oct. 6 affirmed its B- long- and B short-term issuer credit ratings on Banco Agrícola SA while revising the outlook to stable from negative.
The outlook revision considers S&P's view that the short-term improvement in the government's access to liquidity will relieve pressure on the bank's capacity to meet its financial commitments during the next 12 months under the current sovereign credit stress on El Salvador.
Meanwhile, S&P revised Banco Agrícola's stand-alone credit profile to "b+" from "bb-" after it revised El Salvador's banking industry country risk assessment, or BICRA, to group 10 from 9. The BICRA action reflects delays in improvements in the country's regulatory framework.
However, the rating agency believes the bank is not currently vulnerable or dependent on favorable business, financial and economic conditions to meet its financial commitments during the next 12 months.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.