The banks Latin America faces divergent outlooks this year based on their diverse credit profiles, the debt rating agency said Thursday. Moody’s in a series of reports in which the best prospects of Mexican banking and a negative outlook for Argentine lenders.
The firm indicated that the operations of Argentine banks are weighed by the strong exposure of sovereign debt, lower profitability and the burden of an expected recession in the third largest Latin American economy.
“Under this scenario, banking financing and liquidity will be subject to changes in the risk perception of macroeconomic adjustments,” the report indicated, at a time when Argentina is experiencing the economic shock of the provisions of the new libertarian government. Javier Milei.
In Mexico, meanwhile, the banking system’s credit outlook improved to “positive” from “stable,” as Moody’s estimated that the sector’s business volume will rise with the sustained growth of nearshoring and consumer confidence, which will stimulate domestic demand.
The agency’s analyzes kept the prospects of the banks in Brazil, Chile, Colombia and Peru “stable”, although each country presents a particular environment and faces important challenges due to aspects such as inflation and changes in THEIR policies.
In the case of Brazilian lenders, Moody’s stable outlook considers an expected slowdown in growth in the region’s largest economy that will moderate business volume in 2024.
Peru’s banks, on the other hand, will be supported by a gradual improvement in credit quality and an increase in loans despite the timid economic recovery expected for this year, the agency indicated.
Source: Ambito
