trending Market Intelligence /marketintelligence/en/news-insights/trending/TyX8Zurbg2rPeI2uFzEWiw2 content esgSubNav
In This List

Fitch downgrades Finca Nicaragua as bad loans increase

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Fitch downgrades Finca Nicaragua as bad loans increase

Fitch Ratings on Sept. 2 downgraded Financiera Finca Nicaragua SA's long-term national scale ratings to B(nic) from BB(nic), maintaining a negative outlook.

The downgrade reflects a "sustained and marked deterioration of the entity's financial profile" as a result of wider losses, and an increase in past-due loans, among other factors, the rating agency said.

The company could face pressure on its liquidity indicators in the short term due to issues related to traditional funding sources, Fitch said, adding that the firm's profitability has suffered due to higher credit provisions and lower demand for credit in Nicaragua.

Loans more than 90 days past due represented 11.44% of Financiera Finca's total credit portfolio as of June, Fitch noted.

The rating agency affirmed the lender's national short-term ratings at B(nic).