BUENOS AIRES, Argentina--(BUSINESS WIRE)--Fitch Ratings has upgraded Nuevo Banco Comercial's (NBC) ratings as follows, after the regulatory approval of the acquisition of NBC by Bank of Nova Scotia (BNS; Fitch Issuer Default Rating of 'AA-') of 60% of the bank's equity, as follows:
--Foreign currency long-term IDR to 'BBB-'from 'BB-';
--Local
currency long-term IDR to 'BBB' from 'BB-';
--National Long-term
rating to 'AAA(ury)' from 'AA(ury)';
--Support Rating to '2' from
'4'.
At the same time, the agency has withdrawn the support rating floor of 'B'.
The Rating Outlook on the IDRs is Positive, the same as on the sovereign's IDRs, and the Outlook on the National long-term rating is Stable. NBC's foreign currency IDR rating is constrained by the country ceiling and further rating actions will mirror any rating action on the sovereign. These ratings, along with the bank's support rating, reflect the potential support from BNS.
The rating action follows the acquisition of NBC by Bank of Nova Scotia (IDR rated 'AA-') of 60% of the bank's capital, held by a consortium of foreign investors led by Advent International; the Uruguayan government owns the remaining 40% in the form of preferred stock with no voting rights.
NBC is the fourth-largest private sector bank in Uruguay. Its market presence is significant in all segments and it had 5.71% of the banking system's assets at April 30, 2011.
The main methodologies used for these rating actions are outlined in the following criteria reports which are available at www.fitchratings.com:
--'Global Financial Institutions Rating Criteria', Aug. 16, 2010;
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria', Aug. 16, 2010.
Applicable Criteria and Related Research:
Global Financial
Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
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