Fitch Affirms Banco Supervielle’s Subordinated Debt at ‘B-‘; Outlook Stable
The bond, which was issued at a fixed rate, is due 2017 and constitutes Tier II capital. The interest will be paid in semi-annual arrears each year, commencing in 2011, while the principal of the notes will be paid in a single installment in 2017.
Fitch has also assigned 'A1(arg)' ratings to the short-term notes class II and III up to ArgP 100 million to be issued by the bank.
Supervielle's ratings reflect its good performance, adequate asset quality, sound management approach and effective risk management. The ratings also factor in the bank's capitalization, which is reasonable, although lower than that of its peers.
In Fitch's view, Supervielle's capitalization is its main weakness and expected growth in the near future will likely lead to a new reduction in its levels.
The bank's profitability at the end of 2010 is good, and its revenues are adequately diversified. Its net interest margin grew strongly over that of the previous year, boosted by a marked reduction of its cost of funds. The bank's management expects to maintain a return on equity (ROE) of around 20% over the next few years, a target that Fitch deems achievable.
Liquidity is comfortable, and Fitch expects it to remain that way as the bank's policy is prudent. Supervielle's management has made signifcant efforts to improve loan collection, especially of those impaired loans granted before the change in the bank's ownership (when it was owned by
Supervielle is
In
Additional information is available at 'www.fitchratings.com'.
--'Global Financial Institutions Rating Criteria' (
--'Short Term Rating Criteria for Corporate Finance' (
--'National Ratings Criteria' (
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
Short-Term Ratings Criteria for Corporate Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=568726
National Ratings Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885
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Source: Fitch Ratings
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