KEY RATING DRIVERS
BG has a long-term Issuer Default Ratings (IDR) of 'BBB+'; driven by its Viability Rating (VR), which is currently at 'bbb+'. BG's ratings reflect the bank's solid franchise, sound and consistent performance, robust capital levels, conservative policies, good asset quality and reserves, ample deposit base and well diversified portfolio. Fitch's view of BG's creditworthiness is tempered by the heightened competition it faces and the lack of a lender of last resort.
The notes rank pari passu with the bank's future and existing senior unsecured debt and will be effectively subordinated to all of BG's secured indebtedness with respect to the value of its assets securing that indebtedness, and certain direct, unsecured general obligations that in case of insolvency are granted preferential treatment pursuant to Panamanian law.
BG will use the proceeds for general business purposes. Considering the bank's solid capital levels and sound profitability, the impact on the bank's leverage is not deemed significant by Fitch.
The notes' rating is sensitive to any changes in BG's
In turn, these ratings could be negatively affected if asset quality deteriorates materially (impaired loans above 2.5% and/or reserve coverage below 100%), performance weakens resulting in an operating ROA below 1.5%, and/or capitalization worsens to a
Fitch currently rates BG as follows:
--Long-term foreign currency IDR 'BBB+', Stable Outlook;
--Short-term foreign currency IDR 'F2';
--Viability Rating 'bbb+';
--Support rating '5';
--Support floor 'NF';
Additional information is available at 'www.fitchratings.com'.
--'Global Financial Institutions Rating Criteria' (
Global Financial Institutions Rating Criteria
Source: Fitch Ratings
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