S&P: Financiera de Desarrollo view stable

Standard & Poor's said it revised its outlook on Financiera de Desarrollo Nacional SA to stable from negative and affirmed its BBB long-term issuer credit rating.

The stand-alone credit profile is bb.

S&P said the outlook revision reflects its view that Financiera de Desarrollo’s ratings would not be affected by rising industry risk for banks operating in Colombia. This immunity is a result of the higher likelihood of extraordinary government support.

In the agency’s opinion, if such scenario materializes, it would lower the anchor for banks operating in Colombia to bb+ from bbb-, but the ratings on Financiera de Desarrollo would remain BBB because of the "extremely high" likelihood of extraordinary government support.

Thus, even if it lowered the stand-alone credit profile by one notch, the issuer credit rating would remain unchanged.

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