Moody's on Dec. 13 revised the outlook of Grupo Aval Acciones y Valores SA's Ba2 long-term local- and foreign-currency issuer ratings and Grupo Aval Ltd.'s Ba2 backed senior unsecured debt rating to negative from stable.
The outlook revision was due to the pressure on the baseline credit assessment of Banco de Bogotá SA, the group's chief operating entity. Moody's noted that Banco do Bogotá has a large presence in potentially more volatile Central American markets, including Costa Rica, which increases the bank's exposure to asset risks.
However, Moody's affirmed Banco de Bogotá's ratings and assessments and kept the outlook at negative. The outlook "now also incorporates the deteriorating operating environments in both Costa Rica as well as Nicaragua, and hence the rising asset risks the bank faces from its exposures in both these countries," the rating agency said.
Moody's also affirmed the other ratings of Grupo Aval Acciones y Valores and Grupo Aval Ltd.