NEW YORK & BOGOTA, Colombia--(BUSINESS WIRE)--Fitch Ratings has today upgraded Financiera de Desarrollo Territorial S.A.'s (FINDETER) support-driven Foreign Currency Long-term Issuer Default Rating (IDR) to 'BBB' from 'BBB-'. The Rating Outlook is Stable. A full list of rating actions follows at the end of this press release.
KEY RATING DRIVERS - IDRs, SUPPORT, SUPPORT FLOOR AND NATIONAL RATINGS
The upgrades reflect the corresponding upgrades on Colombia's IDRs (see 'Fitch upgrades Colombia to 'BBB'; Outlook Stable' dated Dec. 10, 2013 at www.fitchratings.com).
Fitch's assessment of the Colombian government's willingness and capacity to provide timely and sufficient support drives the ratings of FINDETER, which are equalized with those of the sovereign. While the Colombian government explicitly guarantee FINDETER's external funding, Fitch believes that support for all the entity's liabilities would be forthcoming, if needed. Fitch views FINDETER as an integral part of the government given in its role in providing financing for infrastructure investment projects and economic development. FINDETER's national ratings reflect the lowest expectation of default risk compared to all other local issuers or obligations, explained by the high probability of government support.
FINDETER has a clear mandate to provide financing for infrastructure investment and promote regional and urban development. FINDETER's strategic importance in Colombia's national development plan underpins Fitch's opinion of the government's willingness of support, while the sovereign's investment grade ratings underpin its capacity, resulting in a Support Rating of '2' and Support Floor of 'BBB'.
RATING SENSITIVITIES
FINDETER's IDRs will mirror any positive or negative rating action on the sovereign ratings.
PROFILE
FINDETER is a nationwide special official institution related to the Ministry of Finance and Public Credit that focuses on economic development. The institution's main shareholder is the government of Colombia along with other public regional shareholders.
Considering the aforementioned factors, Fitch has taken the following ratings actions:
--Long-term IDR upgraded to 'BBB' from 'BBB-'; Outlook Stable;
--Short-term IDR upgraded to 'F2' from 'F3';
--Local Currency Long-term IDR upgraded to 'BBB+' from 'BBB'; Outlook Stable;
--Local Currency Short-term IDR upgraded to 'F2' from 'F3';
--Support Rating affirmed at '2';
--Support Floor revised to 'BBB' from 'BBB-';
--National Long-term rating affirmed at 'AAA(col)'; Outlook Stable;
--National Short-term rating affirmed at 'F1+(col)';
--Senior Unsecured Bonds 2013 up to COP$400.000 million National Rating affirmed at 'AAA(col)'.
Contacts:
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);
--'Fitch Upgrades Colombia to 'BBB'; Outlook Stable' (Dec. 10, 2013).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=811851
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