Fitch puts Venezuela banks on watch

Fitch Ratings said it conducted a review of Venezuelan banks and related entities, affirming the ratings and placing all of the banks' national ratings on negative watch.

The banks affected include Banco Del Caribe, CA Banco Universal; Banco Exterior, CA Banco Universal; Banco Nacional de Credito CA; Banco Occidental de Descuento, Banco Universal CA; Mercantil, CA Banco Universal; and Mercantil Servicios Financieros CA.

The long-term issuer default ratings on the banks were affirmed at CC as Fitch said it expects these banks to continue meeting their deposit obligations in the absence of government intervention due to the domestic market's high liquidity.

The viability rating rating on Banco Exterior also was downgraded to C from CC due to a sharp drop in capitalization to critically low levels in light of hyperinflation, the agency said.

The national ratings were placed on negative watch to reflect the challenging operating environment for the banks, Fitch said. Over the next six months, the agency said it will attempt to obtain additional information and will take appropriate rating actions as needed.

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