Moody's could cut Bolivian banks

Moody's Investors Service said it placed the global ratings assigned to subordinated debt issued by Banco Economico SA (Bolivia), Banco Ganadero SA, Banco Nacional de Bolivia SA and Banco Solidario SA (Bolivia) that currently have systemic support incorporated in their ratings on review for downgrade.

At the same time, Moody's Latin America included in the review for possible downgrade the corresponding national scale ratings.

All other ratings and outlooks for these issuers remain unaffected.

Moody's said the actions reflect its opinion that the global trend toward imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors.

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