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Prospect News home > News index > List of issuers M > Headlines for Mercantil, CA Banco Universal > News item |
Fitch cuts Mercantil to A(ven)
Fitch Ratings said it affirmed Mercantil CA Banco Universal's viability rating at cc, which in turn drives its long-term foreign and local currency issuer default ratings being affirmed at CC following Fitch's peer review of Venezuelan Private Sector Banks.
No outlook is assigned at this rating level.
At the same time, the agency downgraded the long-term national rating A(ven) from A+(ven).
Fitch said the one-notch downgrade of Mercantil's long-term national rating reflects greater compression of the bank ratings on the local scale given shared operating challenges.
“In particular, Fitch is concerned about the ability of all Venezuelan banks' to maintain capitalization above regulatory minimums as this could increase intervention risks. Nevertheless, Mercantil's extensive franchise and stronger liquidity continue to benefit its national ratings and the bank remains the highest rated entity in its market,” the agency said in a news release.
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