Moody's changes FLAR view to negative

Moody's Investors Service said it changed the outlook on Fondo Latinoamericano de Reservas to negative from stable and affirmed the Aa2 long-term issuer rating.

“The key driver for the change in the outlook to negative from stable is Moody's expectation that FLAR's so far outstanding asset performance will soon deteriorate, as the entity's largest outstanding loan to the central bank of Venezuela will likely be classified as non-performing in the near term. A worsening asset performance will in turn negatively impact FLAR's capital adequacy metrics. Moody's expects a potentially protracted resolution process,” the agency said in a press release.

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