Rating Raised On Continental Trustees Ltd. Following Revised BBVA Banco Continental Credit Profile

  • We upgraded our rating on Continental Trustees Ltd., a synthetic ABS transaction that depends on the credit quality of a subordinated loan that serves as collateral on the transaction.
  • This rating action follows the revision of BBVA Banco Continental's stand-alone credit profile due to improved capitalization metrics.
BUENOS AIRES (S&P Global Ratings) March 14, 2019--S&P Global Ratings today 
raised to 'BB+' from 'BB' its rating on Continental Trustees Ltd., a synthetic 
asset-backed securities (ABS) transaction that depends on the credit quality 
of a subordinated loan that serves as collateral on the transaction.

Today's rating action follows the revision on BBVA Banco Continental's 
stand-alone credit profile (SACP) to 'bbb+' from 'bbb', after which our 
opinion of the credit quality of the underlying subordinated loan improved as 
well. S&P Global Ratings also revised its outlook on BBVA Banco Continental to 
stable from negative following an improvement in its capitalization metrics. 
We also affirmed our 'BBB+/A-2' ratings on the bank (see "BBVA Banco 
Continental Outlook Revised To Stable From Negative On Improved Capital 
Metrics, 'BBB+/A-2' Ratings Affirmed," published March 11, 2019).

The ABS synthetic transaction has a structure that mirrors the credit risk of 
the underlying collateral's credit quality in the form of a participation 
interest in a subordinate loan issued by BBVA Banco Continental S.A. We 
consider the credit quality of the underlying loan to be below the bank's 
SACP, reflecting both the incremental risk to creditors related to the 
subordinated position of these notes to the bank's senior creditors, the 
bank's flexibility in making interest payments, and the loss absorption 
characteristics set by local regulation.

We will continue to monitor the rating on this structured finance transaction 
and revise the rating as necessary to reflect any changes in the transaction's 
underlying credit quality.