Fitch Ratings Centroamerica
in Central America
Friday, June 3, 2011
The rating agency Fitch Ratings has raised its grade to BBB and the perspective changed from positive to stable.
The way the government has structured its debt and the economic boom the country is experiencing are some of the elements that justify the improvement in the rating given by Fitch Ratings.
In addition, banking stability and political consensus among political parties on the economic direction that the country should take have also influenced the revision of the grade.
Friday, January 28, 2011
Fitch suggests an increase in tax burden in order to improve government spending and thus achieve higher social spending.
This will improve the country´s risk ratings and thus attract investment, said Erick Campos, Executive Director of Fitch.
Thursday, November 4, 2010
Fitch Ratings highlighted in their report a “relatively stable” performance of the insurance industry in 2010.
The performance of the Guatemalan insurance industry in 2010 has been relatively stable, despite the occurrence of two catastrophic events (storm "Agatha" and the eruption of the "Pacaya" volcano in late May) and the generally stagnant premiums of the main operating branch of the industry: Motor Vehicle Insurance. Thus, advances in operating costs, especially for claims incurred in the auto industry, despite the slowdown in premiums, reversed the operating deficit, but the industry still presents accident rates higher than the combined coverage average of the Central American region, which suggests the existence of future opportunities for improvement.
Thursday, October 7, 2010
The company was no longer offering their policies since April, 2010, and their main asset was a license to operate in the Salvadoran insurance market.
The establishment in 2009 of holding company Mapfre La Centroamericana, whose stock is owned 65% by Mapfre Mundial Holding, joined regional operations with Panamanian Aseguradora Mundial.
Thursday, September 16, 2010
A report from Fitch indicates that only in 2011 the Banks of Central America will reach profitabilitye levels that could be compared to those before the crisis.
Fitch thinks that the majority of Central America's banking systems will earn more profits than in 2009, but it will not be until 2011 when they reach profitability levels comparable to the ones they had before the crisis. The perspectives of financial performance for the Nicaraguan Banking System are less favorable than the rest of the region; meanwhile the possibility that results in Costa Rica surpass the ones in 2009'will depend basically on the evolution of the currency exchange rate.
Thursday, September 9, 2010
Fitch Ratings has recently confirmed that the country's local and foreign currency risk classification as 'BB', with Outlook Negative.
El Salvador's main credit weaknesses include its comparatively slow GDP growth, a narrow income base and rigid fiscal policy, particularly apparent in the light of the country's vulnerability to the US economic slowdown and corresponding drop in capital movement.
Wednesday, July 7, 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.
Tuesday, October 6, 2009
Illegal insurance would continue existing in Costa Rica, despite opening the market and tighter supervision.
The former monopoly by the National Insurance Institute of Costa Rica (INS) favored the sale of insurance by companies without presence in the country, specially in the life insurance segment.
Thursday, August 6, 2009
Fitch Ratings Central America commented on the state of the Honduran banking system, in the light of recent political developments.
Risks faced by Honduran banks due to the adverse economic environment have increased as a result of recent political events in the country. A Fitch report on April 2009 reported that Honduran banks were sensibly affected by the adverse local and regional economic environment. This was particularly visible in less profit, as well as a deterioration of the loan portfolio. Right now, Honduran banks face greater challenges, due to higher currency exchange risks, and worse credit portfolios.
Thursday, June 25, 2009
Guatemala´s BB+ sovereign risk rating and stable perspective, which is so close to the desired “Investment Grade,” is facing four threats.
According to an article by C.Véliz and J. Gramajo in Sigloxxi.com, Mauricio Choussy, the director of Fitch Central America, notes that four weaknesses persist in the country: “Low tax revenue, weak social indicators, social instability, and high levels of delinquency.”
Thursday, April 16, 2009
On April 23 and 24, El Salvador will host the Second Latin American and Caribbean Meeting of Trade and Investment.
Among the topics to be discussed at the meeting organized by the Salvadoran Commission for the Promotion of Exports and Investments (PROESA and EXPORTA) are: the impacts of the global crisis on developing countries and the measures that have been taken to mitigate it; an analysis of the Latin American and Caribbean competitive situation in infrastructure and trade services and the situation of the tourism sector, including its current challenges and opportunities.
Monday, March 9, 2009
El Salvador reported lower inflation and greater stability unlike other countries in the region.
Both factors have boosted Salvadoran exports to the isthmus which totaled $1.191 billion between January and November, 2008, an increase of 23.7% over the same period in 2007.
An article in laprensagrafica.com reported that Mauricio Choussy, director of Fitch Ratings Central America, said: ""Salvadoran firms are growing by exporting to the region and have taken advantage of low inflation and the fixed exchange rate with the dollar.'
Thursday, February 19, 2009
Fitch warns that credit restrictions will stop private investment and, with that, economic activity will decline.
Elsalvador.com publishes in its website: "The executive director of the risk assessors, Fitch Ratings, Mauricio Choussy, calculated that the crisis will have a transfer delay of some three quarters from the United States to the Central American region, a forecast that was confirmed by the former minister of the Salvadorian Economy, Yolanda de Gavidia, ´I believe that El Salvador has not yet felt the worse part and my perception is that it is going to be in the upcoming second semester that we are going to feel it,´ she affirmed."
Monday, January 26, 2009
Despite the measures adopted by the Executive to guarantee liquidity, the price of money continued to rise in December.
Elsalvador.com reports: "During the last of quarter of 2008 the interest rate for one year loans increase by one point to 9.58%, according to figures by the Central Reserve Bank (BCR), while for loans for more than a year, it grew 0.65%, to 10.46%.
Tuesday, September 23, 2008
Fitch upgraded long term and short term ratings for FICOHSA bank to A-(hnd) and F1(hnd), up from BBB+(hnd) and F2(hnd), respectively.
At the same time it also upgraded the ratings for FICOHSA Corporate Bonds from BBB+(hnd) to A-(hnd). The outlook assigned is stable.
The new ratings reflex the strengthening of FICOHSA bank's networth, improvements in financial performance, and the strengthening of its participation in the commercial banking system market in Honduras.
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