S&P Raises Bolivia’s Mercantil Rating

S&P has revised its outlook on Banco Mercantil Santa Cruz (BMSC) to stable from negative, following a similar change in the sovereign outlook on Bolivia, reflecting the close linkage between the sovereign and financial system. It has a B minus/C local currency counterparty credit, foreign currency counterparty credit, and CD rating. “Despite the frail operating environment, BMSC has shown good performance, and, at this point, the ratings remain constrained by the sovereign’s creditworthiness,” says S&P.