Reuters: Market News: TEXT-S&P raises Citibank Uruguay ratings to 'BBB-/A-3'

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TEXT-S&P raises Citibank Uruguay ratings to 'BBB-/A-3' Apr 11th 2012, 16:53 Tweet Share this Email Print Wed Apr 11, 2012 12:53pm EDT April 11 - Overview -- On April 3, 2012, we raised our sovereign credit rating on Uruguay to 'BBB-/A-3' from 'BB+/B'. -- We are raising our global scale counterparty credit ratings on Citibank Uruguay to 'BBB-/A-3' from 'BB+/B', while affirming the national scale counterparty credit rating at 'uyAAA'. -- The outlook is stable, reflecting our expectation that Citibank will continue to benefit from its privileged position as a branch of New York-based Citibank. Rating Action On April 11, 2012, Standard & Poor's Ratings Services raised its global scale counterparty credit ratings on Citibank N.A. (Uruguay Branch) to 'BBB-/A-3' from 'BB+/B', while affirming the national scale counterparty credit rating at 'uyAAA'. The outlooks are stable. Rationale The rating action on Citibank Uruguay followed our April 3, 2012, upgrade of the Oriental Republic of Uruguay to 'BBB-/A-3' from 'BB+/B'. We based our rating action on Uruguay on the country's sound economic growth prospects and improving external and fiscal indicators, as foreign direct investment has strengthened and improved its economic diversification. Prudent economic policies in recent years, backed by a broad political consensus, have allowed Uruguay to grow rapidly and reduce its main credit vulnerabilities. Per capita real GDP growth averaged about 6% between 2006 and 2011. In contrast with much of South America, Uruguay has managed to grow rapidly over the past decade without significantly improving its trade policies. Standard & Poor's ratings on Citibank Uruguay reflect sovereign risk and the bank's status as a branch of New York-based Citibank N.A. (A/Negative/A-1). We assume that, in a stressed scenario, without the sovereign's direct intervention, the parent company would ensure full and timely payment of its Uruguayan branch's obligations. We cap our global scale ratings on Citibank Uruguay with the sovereign credit ratings on Uruguay. The national scale ratings on the bank exclude sovereign intervention risk and reflect the bank's position relative to other financial institutions in that country. Outlook The stable outlook on Citibank Uruguay reflects that on the sovereign. Related Criteria And Research -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011 -- Group Rating Methodology And Assumptions, Nov.9, 2011 Ratings List Upgraded To From Citibank N.A. (Uruguay Branch) Counterparty Credit Rating BBB-/Stable/A-3 BB+/Stable/B Certificate Of Deposit BBB-/A-3 BB+/B Ratings Affirmed Citibank N.A. (Uruguay Branch) Counterparty Credit Rating National Scale uyAAA/Stable/-- Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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