S&P puts Banco Industrial on watch

S&P said it placed Banco Industrial SA’s BB- rating on CreditWatch with negative implications. The placement follows the rating action on Guatelmala.

A U.S. court issued a restraining notice to Bank of New York Mellon, blocking it from disbursing the interest payment due on Guatemala's 2026 eurobond. S&P placed Guatemala’s rating on watch on Friday.

“The court action stems from a commercial dispute between the Guatemalan government and an electric distribution company, TECO Guatemala Holdings (TECO). The interest payment on the 2026 Eurobond has a 30-day grace period ending Dec. 3, 2020,” S&P said in a press release.

S&P noted the bank has significant exposure to country risk, and its business is very sensitive to sovereign stress.

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