S&P lowers three Panama banks view to negative

S&P said it revised the outlook on three Panamanian banks to negative from stable, including Banco Latinoamericano de Comercio Exterior SA (Bladex), Global Bank Corporation y Subsidiarias and Multibank Inc. y Subsidiarias.

The agency also said it affirmed the counterparty credit ratings and issue-level ratings on these four banks.

S&P said it is maintaining the Bicra score on Panama at group 5.

This is based on the country’s economic risk score and industry risk score at 6 and 5, respectively, which anchors banks operating at BBB-.

However, the agency said it is revising the Bicra industry risk trend to negative from stable and keeping the economic risk trend as stable.

For the past three years, anti-money laundering scandals continue to put an unfavorable spotlight on Panama, S&P said.

The scandals reveal some weaknesses and significant areas for improvement in the banking regulation and supervision, the agency said, as well as the governance and transparency in the country's financial system.

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