Fitch Rates Banco de Reservas, HSBC Panama

Fitch assigned a BBB plus rating to HSBC Bank Panama, reflecting the potential support from its parent and key role in the parent’s regional strategy. The shop finds that ratings are limited by Panama’s country ceiling and challenges of integrating it with Primer Banco del Istmo, whose ratings it affirmed at BBB plus. The shop also assigned a rating of B to the Dominican Republic’s Banco de Reservas, with a positive outlook. The rating is supported by factors including its ample market share and the improvement of profitability ratios, and limited by overexposure to the Dominican government, its shareholder, on its balance sheet and below average asset quality.