Fitch: Industrial Subordinated Trust notes BB-

Fitch Ratings said it assigned an expected long-term foreign currency rating of BB- to Industrial Subordinated Trust's upcoming 10-year dollar-denominated loan participation notes.

The final rating is contingent upon the receipt of final documents conforming to information already received, Fitch said.

The trust also has a foreign-currency long-term issuer default rating of BB, foreign-currency short-term issuer default rating of B, local-currency long-term issuer default rating of BB and local-currency short-term issuer default rating of B.

The outlook is positive.

The notes will be issued for an amount to be determined and will be secured by the trust's sole asset, a subordinated loan from Bank of America to Banco Industrial, Fitch said.

The notes will mirror all the conditions of the loan. The principal under the notes will mature in 10 years, and interest payments will be made semi-annually while capital will be paid at maturity of the loan, the agency said.

The notes will carry a fixed-interest rate to be set at the time of issuance. The loan will be recognized by Guatemala's regulator as tier II capital for regulatory capital purposes, Fitch said.

The expected rating is one notch below the long-term issuer default rating of BB, reflecting the notes subordinated status and the fact that they effectively rank junior to all of the trust's present and future senior indebtedness, the agency said.

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