Fitch Downgr Banco Latinoamericano De Exportaciones --Bladex--.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 25, 2001 Fitch, the international rating agency has downgraded Banco Latinoamericano de Exportaciones' (Bladex) following ratings: the long-term foreign currency rating from 'A-' to 'BBB+' and the individual rating from 'B' to 'B/C'. The short-term rating of 'F2' and support rating of '4' are affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . The long-term Rating Outlook is Negative. In recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time bank's business focus has expanded from its traditional focus of providing trade finance to banks to include growing amounts of medium-term lending, trade finance and working capital financing to corporate borrowers in its principal markets. At end-June 2001, exposure to Brazil, Mexico and Argentina accounted for 81% of total risks, reflecting the importance of these economies to the region. Two-thirds of total risks are to Brazil (39%) and Argentina (22%), both economies undergoing significant economic pressures, giving Bladex a higher risk profile, especially as its exposure has moved increasingly away from trade finance, which has historically proved exempt from such pressures. While Bladex's asset quality indicators are currently strong, as they have historically been, Fitch is concerned that the bank's evolving business mix and high levels of exposure have increased its risk profile. In addition, traditionally boasting strong capital adequacy ratios Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. , Bladex has seen its capital indicators reduced in the wake of its Board of Directors' decision to be more sensitive to shareholders needs. This has resulted in an increased target dividend payout ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: , and Bladex will likely operate going forward with a thinner capital base behind its widened business scope. At end-June 2001, the Tier 1 risk- adjusted capital ratio stood at 17.1%. Bladex is a multilateral organization promoting and financing trade in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the Caribbean. More recently, its focus has been expanded to include short and medium term working capital loans to corporate borrowers. The bank has 3 classes of shareholders: Class A- 23 Latin American and Caribbean central banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z or their designated official institutions (27% at end-2000; this class exercises control of voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. ); Class B- 178 Latin American and Caribbean commercial banks (24%); and Class E- public shareholders (49%); class E shares are traded publicly. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion