Fitch Rates the Reopening of Global Bank Corp.'s Issuance of Sr Unsecured Notes Due 2019 'BBB-'

NEW YORK--()--Fitch rates the reopening of Global Bank Corporation's (GB) issuance of senior unsecured notes due 2019 'BBB-'.

The new senior unsecured notes will be issued in an amount of USD150 million, issuance made under the 5.125% senior unsecured notes due 2019 program issued originally by an amount of USD400 million. These notes will constitute direct, unconditional and unsecured senior obligations of the issuer and will rank pari passu among themselves and with all other unsubordinated and unsecured obligations of GB.

Fitch considers that the additional notes do not materially alter the risk profile of the issuer or of the outstanding debt previously issued under the program.

KEY RATING DRIVERS

The senior unsecured notes are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's criteria.

GB's IDR is driven by its consistent strategy, good profitability and asset quality indicators, funding diversification and sound positioning within its core market. The bank's ratings also factor in its moderate capitalization ratios and moderate loan portfolio concentration by size.

RATING SENSITIVITIES

A change in GB's IDR will have an impact on the senior unsecured notes rating.

PROFILE

GB is the third largest Panamanian bank by loan portfolio and fifth by deposits, in a country that is characterized by high banking competition. As of December 2014, GB had a participation of 7.6% of the banking system's gross loans and 4.6% of deposits, (based on unconsolidated figures). GB also has the third largest network of service points in Panama and sixth by branches and ATMs.

For more details on GB's ratings and credit profile, see Fitch Affirms Global Bank Corporation's IDR at 'BBB-'; Outlook Stable', dated March 24, 2015, available at www.fitchratings.com.

Fitch rates the reopening of GB's issuance as follows:

--USD150 million senior unsecured notes at 'BBB-'.

Fitch currently rates GB as follows:

International ratings

--Long-term IDR 'BBB-'; Outlook Stable;

--Short-term IDR 'F3';

--Viability Rating 'bbb-';

--Support Rating '5';

--Support floor 'NF';

--USD400 million senior unsecured notes due 2019 'BBB-'.

National ratings:

--Long-term national rating 'AA(pan)', Outlook Stable;

--Short-term national rating 'F1+(pan)'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--Global Financial Institutions Rating Criteria (March 20, 2015).

Applicable Criteria and Related Research:

Global Non-Bank Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863584

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Contacts

Fitch Ratings
Primary Analyst
Mark Narron
Director
+1 212-612-7898
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Rolando Martinez
Director
+503 2516-6619
or
Committee Chairperson
Franklin Santarelli
Senior Director
+1 212-908-0739
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Mark Narron
Director
+1 212-612-7898
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Rolando Martinez
Director
+503 2516-6619
or
Committee Chairperson
Franklin Santarelli
Senior Director
+1 212-908-0739
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com