Fitch Expects to Rate Bladex's Senior Unsecured Bonds 'BBB+(exp)'

NEW YORK--(BUSINESS WIRE)-- Based on the documentation provided, Fitch Ratings expects to rate Banco Latinoamericano de Comercio Exterior's (Bladex) upcoming USD senior unsecured notes 'BBB+(exp)'. The final rating is contingent upon the receipt of final documents conforming to information already received.

The notes (for an amount to be determined) will be issued under Bladex's USD2.25 billion Euro medium-term note program. The notes will be Bladex's senior unsecured obligations and will rank pari passu with all of its existing and future unsecured obligations but will be effectively subordinated to any future secured indebtedness.

Principal under the notes will mature in five years, and they will carry a fixed interest rate to be set at the time of the issuance; interest payments will be made semi-annually.

The expected rating of the notes is at the same level of the bank's long-term foreign currency Issuer Default Rating (IDR) of 'BBB+', which is driven by Bladex's Viability Rating of 'bbb+'. Bladex will use the proceeds from the planned issue for general corporate purposes.

RATING SENSITIVITIES

The notes' rating will vary in line with Bladex' IDR which is sensitive to:

--More stable revenues and a material reduction in credit and funding concentrations as this could result in lower risk and improved, more consistent profitability;

--Significantly weaker margins, or important asset quality deterioration that erodes profitability and weakens the capital/reserves cushion beyond Fitch's base case scenarios, (Fitch Core Capital below 12%).

Bladex is a specialized bank established by the central banks of Latin American and Caribbean countries to support trade finance in the region.

Fitch currently rates Bladex as follows:

--Long-term foreign currency IDR 'BBB+'; Outlook Stable;

--Short-term foreign currency IDR 'F2';

--Viability rating 'bbb+';

--Support Rating '5';

--Support Rating Floor 'NF';

--Senior unsecured notes 'BBB+';

--Senior unsecured certificates 'AAA(mex)';

--Senior Unsecured short term certificates 'F1+(mex)'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Bank Rating Criteria' (March 20, 2015).

Applicable Criteria and Related Research:

Global Bank Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863501

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983988

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst:
Diego Alcazar, +1-212-908-0396
Director
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst:
Theresa Paiz, +1-212-908-0500
Senior Director
or
Committee Chairperson
Alejandro Garcia, +52 81 8399 914
Senior Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
[email protected]

Source: Fitch Ratings

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