NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a 'BBB+' rating to Continental Senior Trustees (Cayman) II Ltd.'s (CSTC II) five-year USD loan participation notes (the notes).
The notes -- issued for an amount of USD 500,000,000 -- are secured by the trust's sole asset, a 100% participation in and to a senior unsecured loan (the loan) from Goldman Sachs Bank to BBVA Continental (BC). As part of the transaction, Goldman Sachs transfers its rights on the loan to CSTC II which in turn pledges the loan rights to the indenture trustee (The Bank of New York Mellon) as collateral for the notes; thus, in Fitch's opinion, the notes attain BBVA Continental's Issuer Default Rating. The notes mirror all the conditions of the loan; principal under the notes will mature in five years and they will carry a fixed interest rate of 5.75%; interest payments will be made semi-annually.
BC's IDRs reflect the support it would receive from its key stakeholder (BBVA; rated 'A+' by Fitch). The rating was placed on Rating Watch Negative on Dec. 20, 2011. In addition, the bank's individual and viability ratings reflect its strong franchise, sound performance, adequate asset quality and reserves, and improved capital. The expected rating of the notes is at the same level of the bank's long-term foreign currency IDR of 'BBB+', which is constrained by Peru's country ceiling. BC will use the proceeds from the planned issue for general business purposes.
BC is Peru's second largest bank, with a market share of about 23% of assets. Holding Continental (50% BBVA, 50% Grupo Brescia) controls 92.24% of the bank. BC has implemented BBVA's policies and is fully integrated within its operative network and management. BC's ratings are as follows:
--Foreign currency long-term Issuer Default Rating (IDR) 'BBB+'; Stable Outlook;
--Foreign currency short-term IDR 'F2';
--Local currency long-term IDR 'A'; Negative Outlook;
--Local currency short-term IDR 'F1';
--Individual rating 'B/C';
--Viability rating 'bbb+';
--Support rating '2'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.