Latin American banks face divergent outlooks this year according to their diverse credit profilesThe debt rating agency said this 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 regarding the operations of the Argentine banks weigh the strong exposure of sovereign debtthe lower profitability and the burden of an expected economic recession.
“Under this scenario, banking financing and liquidity will be subject to changes in the risk perception of macroeconomic adjustments,” indicated the report, at a time when Argentina is experiencing the economic shock of the provisions of the new government of 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 sustained growth in nearshoring and consumer confidence, which will stimulate demand. internal.
The agency’s analyzes kept the outlook for 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 ITS 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.
The banks of Peru, 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
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