S&P downgrades Vision Banco

S&P said it lowered the long-term issuer credit rating on Vision Banco SAECA to B from B+.

The outlook also was revised to stable from negative.

The downgrades follow a revision of the bank's risk position to moderate from adequate, which led to the revision of the bank’s stand-alone credit profile to B from B+, S&P said.

The agency also said it lowered the ratings to B from B+ because the ratings on the entity do not incorporate notching for extraordinary support from either the group or the government.

The ratings reflect the bank's adequate business position among banks in Paraguay, its weak capital and earnings and moderate risk position given the bank's current and expected levels of asset quality, S&P said.

The agency also noted the bank’s above-average funding due to its well-diversified and stable deposit base, along with its adequate liquidity.

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