Negative Perspective on Salvadorian Banks

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The reason for this change is the current "negative" perspective for the sovereign rating for the Republic of El Salvador, which could affect the Issuer Default Rating for the long term for the three main banks in El Salvador in the case that the rating is reduced again in the country.

On June 18, 2009, Fitch reduced the sovereign rating for El Salvador to "BB" from "BB+" and maintained the perspective at "negative." At the same time, it affirmed the ceiling for the country of El Salvador at "BBB-" (see the comments available at www.fitchratings.com).

Source: Fitch Ratings Centroamerica

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The accelerated growth of bank loans could result in a deterioration of portfolios due to a change in interest rate trends.

If interest rates increase, these portfolios could experience higher default levels, according to a report released yesterday from the risk rating agency Fitch Ratings.

Fitch keeps BANPRO and BANCENTRO on Negative Rating Watch

April 2008

Fitch maintains a Negative Rating Watch on the national ratings of the Nicaragua's Banco de la Producción, S.A., and its subsidiaries (BANPRO) and Banco de Crédito Centroamericano, S.A. (BANCENTRO) following the announcement that 395.3 million córdobas (20.6 million dollars), equal to the amount of capital and interest of the bank bonds (CENIS) that matured April 15, 2008, has been deposited in an account in the name of the Minister of Finance and Public Credit in the Central Bank of Nicaragua.

The transfer of these funds from the banks that held these bonds is subject to the revocation of the judicial order that currently keeps the payments of these oblicgations suspended.

Fitch changes outlook for El Salvador to negative

October 2008

Fitch Ratings has revised the Rating Outlook on El Salvador's long-term foreign and local currency Issuer Default Ratings (IDRs) to Negative from Stable.

The ratings are as follows:
Long-term foreign currency IDR at 'BB+'; Long-term local currency IDR at 'BB+'; Short-term foreign currency at 'B'; Country ceiling at 'BBB-'.

Fitch Maintains El Salvador’s Rating

July 2010

Fitch Ratings has announced that the country’s long term foreign and local currency rating remains “BB” with a negative outlook.

Fitch has also announced El Salvador’s short term rating as “B” and the country’s rating as “BBB-”.

El Salvador’s risk profile is a function of its monetary stability (helped by its official dollarization), a good history of structural reform, a stable financial system and the continuing support of multinational institutions. In addition, the country has coped well with the global financial crisis and unprecedented domestic political transition, in which the left-wing FMLN government took power after approximately 20 years of rule by the right-leaning ARENA party.