Moody’s: Banco Fie notes Ba3

Moody’s Investors Service said it assigned a Ba3 global scale rating and an Aa1.bo national scale rating to Banco Fie’s first takedown under its senior debt program of 600 million in boliviano.

The issuance will be for up to 200 million in boliviano and split into two different classes due in 2,160 days (class A) and 3,060 days (class B).

The outlook is stable.

The bank’s ratings reflect its well-established position among Bolivian micro-financiers, which supports its historically robust interest margins, Moody’s said.

However, the bank has sought to diversify its business model by continuing to bank its customers as they move up the income ladder and graduate to small- and medium-sized companies, the agency said.

The ratings also consider the bank’s manageable asset-risk indicators, healthy reserve coverage and capital levels, Moody’s said.

These strengths more than offset its modest total liquidity and pressures on profitability stemming from government regulation, the agency added.

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