Fitch might cut Banesco

Fitch Ratings said it placed Banesco Banco Universal’s long-term foreign- and local-currency issuer default ratings, viability rating and long-term national rating on rating watch negative.

Fitch said it placed the ratings on watch because recent events that resulted in the Venezuelan authorities intervening in the bank for 90 days following allegations that executives knowingly allowed the bank to execute illegal exchange rate transactions.

While the bank's operational continuity has not been disrupted thus far, the agency said the negative reflects its belief that recent events could pressure the bank's liquidity position.

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