Research Update: Oriental Financial Group And Subsidiary Ratings Removed From CreditWatch And Affirmed; Outlook Is Negative Jan 13
- ID: 2384411
- January 2013
- Standard & Poors
Puerto Rico-based regional banking company Oriental Financial Group completed its acquisition of Banco Bilbao Vizcaya Argentaria Puerto Rico (BBVA PR) in December 2012. We think Oriental should be able to successfully integrate BBVA PR given management's knowledge of the local market and previous experience integrating Eurobank, but there is some integration risk given BBVA PR's size. We are affirming our 'BB+' rating on Oriental Financial Group and our 'BBB-' rating on Oriental Bank and removing the ratings from CreditWatch negative. The outlook on the long-term ratings is negative, reflecting the potential for a deterioration in loan performance, the weak local economy, and integration risks. On Jan. 24, 2013, Standard & Poor's Ratings Services affirmed its 'BB+' counterparty credit rating on...
Companies mentioned in this report are:
- OFG Bancorp
- Oriental Bank
- Oriental Financial (PR) Statutory Trust II
Action: Outlook: Negative
Action: Removed From CreditWatch
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Product Type: Research Update
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