Fitch revises Costa Rican banks to negative

Fitch Ratings said it affirmed the issuer default ratings of the following Costa Rican banks and revised the outlooks to negative from stable: Banco BAC San Jose, SA; Banco Davivienda (Costa Rica), SA; Banco de Costa Rica; Banco Nacional de Costa Rica; and Banco Popular y de Desarrollo Comunal.

The agency also affirmed the viability ratings of these banks, except for Banco de Costa Rica, which remains on negative watch on certain issuer-specific concerns.

The action follows the Jan. 18 revision of Costa Rica's sovereign outlook to negative from stable.

Fitch said the negative outlooks indicate that the issuer default ratings would be downgraded in the event of a Costa Rican sovereign downgrade. Conversely, a revision of the sovereign's issuer default rating outlook to stable would likely prompt a similar action on the banks' issuer default rating outlooks.

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