S&P: Banco Regional notes BB-

Standard & Poor's said it assigned a BB- rating to Banco Regional SAECA's proposed Rule 144A senior notes to be issued for up to $300 million.

The notes are expected to have a medium- to long-term tenor of up to 10 years, S&P said.

The rating on the notes is the same as the long-term issuer credit rating on the bank and reflects a view that the notes will rank pari passu with its other senior unsecured debt and will be the bank's direct, unsecured, unsubordinated and unconditional obligations, S&P said.

The proceeds will be used primarily to fund its expansion in the domestic market, the agency said.

The ratings reflect the bank's strong business position in the Paraguayan banking system, weak capital and earnings, adequate risk position and adequate liquidity, S&P said.

The BB- rating is at the same level as the bank's BB- stand-alone credit profile because Banco Regional does not receive external support, the agency said.

Rabobank Financial Institutions Development BV owns 40% of the bank and local shareholders own the remainder, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.