Fitch downgrades IBEC

Fitch Ratings said it downgraded International Bank for Economic Co-operation's long-term issuer default rating to BB+ from BBB. The agency placed the ratings on rating watch negative (RWN).

“The downgrade reflects the downward revision of solvency and liquidity to bbb+ (from a- previously) due to the macro financial shocks resulting from international sanctions in response to Russia's military invasion of Ukraine. Fitch has also revised its assessment of IBEC's business environment so that it now translates into a three-notch downward adjustment to solvency and liquidity (from two previously), to bb+,” the agency said in a press release.

The RWN indicates volatility of the situation in international relations, including possibly tougher sanctions over Russia’s actions and the effect it may have on the bank’s key solvency metrics, Fitch said.

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