Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : News Links and Chart Links -- Ignore unavailable to you. Want to Upgrade?

To: pallmer who wrote (4999)	1/21/2003 5:28:24 PM
From: pallmer	Read Replies (1) \| Respond to of 29604

-- TEXT-Moody's cuts 3 Venezualan banks' ratings -- (The following statement was released by the rating agency) NEW YORK, Jan 21 - Moody's Investors Service downgraded the bank financial strength ratings (BFSR) of Banco Mercantil S.A., BBVA Banco Provincial S.A., and Banco de Venezuela Grupo Santander S.A. to E+ from D-, and changed the outlook for foreign currency deposit ratings and BFSRs of all five banks that it rates in Venezuela to developing from stable. These outlook changes are a direct result of the change in outlook of Venezuela's ceiling for foreign currency bank deposits to developing from stable. In addition, Moody's also downgraded Venezuela's country ceiling for foreign currency bonds and notes to Caa1 from B3 due to the continuing suspension of the country's oil operations and the uncertainty about when production will resume. This downgrade did not affect the rated banks, which do not have rated foreign currency bonds or notes. Moody's downgrade of the bank financial strength ratings of Banco Mercantil, BBVA Banco Provincial, and Banco de Venezuela Grupo Santander, the three strongest banks in the Venezuelan system, to E+ from D-, reflects the continued erosion of the operating environment. Moody's also expects that corporate defaults will likely increase as a result of the ongoing economic disruption, negatively affecting the banks' asset quality. The other two rated banks, Banco del Caribe and Banco Banesco, are already rated E+. On February 27, 2002, the ratings agency had put the system's BFSRs on negative outlook, stating that "the Venezuelan banking system should be viewed with a certain amount of caution in light of the deteriorating political and economic environment in which it operates." This outlook culminated in a downgrade of the system on September 26, 2002, when Moody's reiterated that the banks were becoming increasingly vulnerable to political risk. The following ratings were affected: Banco Mercantil S.A: bank financial strength rating to E+ from D- BBVA Banco Provincial S.A: bank financial strength rating to E+ from D- Banco de Venezuela Grupo Santander S.A: bank financial strength rating to E+ from D- (C) Reuters 2003. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. nN21269405 21-Jan-2003 22:27:30 GMT Source RTRS - Reuters News