Fitch Ratings-Barcelona/London-12 February 2009: Fitch Ratings has today downgraded three Andorran banks' Support rating to '4' from '3'. The banks are Credit Andorra (CA), Andorra Banc Agricol Reig (Andbanc) and Banca Privada d'Andorra (BPA). The Support Rating Floor for CA and Andbanc has been revised to 'B' from 'BB+' and for BPA to 'B' from 'BB'.
The rating actions follow Fitch's reassessment of external support to Andorran banks amid the more complex operating environment. Fitch does not rate Andorra's sovereign risk. However, given the size of the Andorran banking system relative to the country's economy - assets are more than 4x nominal GDP - Fitch believes there would be a limited probability of support to Andorran banks in case of need because of the limited resources at the government's disposal.
Andorra does not have a lender of last resort, nor does it have a deposit guarantee scheme. However, a significant precedent was established when an Andorran bank was rescued from collapse by other local banks to maintain confidence in and the reputation of the Andorran banking system.
Fitch recently affirmed the abovementioned Andorran banks' other ratings - Long-term Issuer Default Rating (IDR), Short-term IDR and Individual rating. Please refer to the Rating Action Commentary published on 22 December 2008 for CA, 24 December 2008 for Andbanc and 30 January 2009 for BPA.
Contact: Roger Turro, Barcelona, Tel: +34 93 323 8400.
Media Relations: Hannah Warrington, London, Tel: +44 (0) 207 417 6298, Email: hannah.warrington@fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The rating actions follow Fitch's reassessment of external support to Andorran banks amid the more complex operating environment. Fitch does not rate Andorra's sovereign risk. However, given the size of the Andorran banking system relative to the country's economy - assets are more than 4x nominal GDP - Fitch believes there would be a limited probability of support to Andorran banks in case of need because of the limited resources at the government's disposal.
Andorra does not have a lender of last resort, nor does it have a deposit guarantee scheme. However, a significant precedent was established when an Andorran bank was rescued from collapse by other local banks to maintain confidence in and the reputation of the Andorran banking system.
Fitch recently affirmed the abovementioned Andorran banks' other ratings - Long-term Issuer Default Rating (IDR), Short-term IDR and Individual rating. Please refer to the Rating Action Commentary published on 22 December 2008 for CA, 24 December 2008 for Andbanc and 30 January 2009 for BPA.
Contact: Roger Turro, Barcelona, Tel: +34 93 323 8400.
Media Relations: Hannah Warrington, London, Tel: +44 (0) 207 417 6298, Email: hannah.warrington@fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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