Fitch Upgrades Grupo Cuscatlan's Subsidiaries on Citigroup Acquisition.

MONTERREY, Mexico -- Fitch Ratings has upgraded the ratings of Grupo Cuscatlan's subsidiaries, following the successful acquisition of these entities by Citigroup from Corporacion UBC Internacional (UBCI). The following Banco Cuscatlan de El Salvador (BCES) ratings have been removed from Rating Watch Positive and the Rating Outlook is Stable:

--Long-term Issuer Default Rating (IDR) upgraded to 'BBB-' from 'BB';

--Short-term rating upgraded to 'F2' from 'B';

--Support to '2' from '5';

--Individual affirmed at 'D'.

The national-scale ratings of Grupo Cuscatlan's subsidiaries in Panama and Honduras were upgraded as follows and the Rating Outlook is Stable:

Banco Cuscatlan de Panama (BCP):

--National scale long-term rating upgraded to 'AAA(pan)' from 'A(pan)';

--National scale short-term rating upgraded to 'F1+(pan)' from 'F1(pan)'.

Banco Cuscatlan de Honduras (BCH):

--National scale long-term rating upgraded to 'AAA(hnd)' from 'A+(hnd)';

--National scale short-term rating affirmed at 'F1+(hnd)'.

Going forward, Grupo Cuscatlan's subsidiaries will benefit from strong potential support provided by the new and Fitch rated 'AA+' shareholder Citigroup. Fitch believes this acquisition provides Citigroup with a robust franchise in Central America. Cuscatlan's subsidiaries, mostly focused on commercial and corporate banking, complement the recent acquisition of Grupo Financiero Uno, prominently focused on retail lending, especially through credit cards. Overall economic prospects continue to be positive for the region.

BCES' Issuer Default Rating (IDR) and Support rating are constrained by El Salvador's country ceiling at 'BBB-'. Its Individual rating remains at 'D' due to the bank's challenges in terms of capital adequacy, asset quality and profitability. BCES' rating could also benefit over time from the integration into Citigroup, depending on the scope and timeframe of measures implemented to enhance BCES' financial profile.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.