Comments on: Moody’s rates Banco de Costa Rica (BCR) with a D+

By: Ken Morris

Ken Morris — Thu, 04 Jul 2013 21:15:00 +0000

Yeah, it looks like a terrible rating, yet the story makes it sound super. I suppose it is the public sector exposure that Moody doesn’t like, but from reading between the lines Moody seems to fault the bank for what might happen (like giving too many loans to the poor if the government decrees that) rather than what has happened. I’m almost curious enough to want to read the original report for myself.

By: georgechapogas

georgechapogas — Thu, 04 Jul 2013 16:54:00 +0000

that is because of it’s public sector exposure. understand BCR is more transparent than many countries banks that hide sovereign debt to keep higher ratings and lower borrowing rates. Germany for example legally hides its public sector exposure and the Braunstedt claims all German banks have nowhere near the reserve needed to cover the public sector debt which is easily as high risk as BCR’s. the German “miracle” is a myth. it is a debt rolling cess pool like all progressive countries.

By: Karen M. Mata

Karen M. Mata — Thu, 04 Jul 2013 13:59:00 +0000

Banks are rated by Moody’s from A to E. Despite the positive sounding tone of this story, BCR received a horrible rating.