Fitch rates Tanner Servicios notes BBB-

Fitch Ratings said it assigned a BBB- long-term rating to Tanner Servicios Financieros SA's CHF 125 million senior unsecured fixed-rate notes.

The senior unsecured bonds, denominated in Swiss Francs, will mature Dec. 3, 2021, Fitch said, and carry a fixed annual interest rate of 1%.

Tanner has a foreign- and local-currency long-term issuer default rating of BBB-, foreign- and local-currency short-term issuer default rating of F3, senior unsecured notes rating of BBB-, long-term national rating of A+(cl) and short-term national rating of N1(cl).

Tanner's senior unsecured bonds are rated at the same level as its issuer default rating and national rating, considering the absence of credit enhancement or a subordination feature, the agency said.

Fitch said it views Tanner's business diversification strategy favorably, but if faces challenges due to its smaller size and higher business concentration compared with peer.

This exposes the company to changes in the economic cycle more than diversified institutions, the agency said.

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