Resolution Reforming Article 12 of the Deposit and Investment Limits Standard

1
Resolution No. CD-SIBOIF-933-3-MAR15-2016
Dated March 15, 2016
NORM REFORMING ARTICLE 12 OF THE DEPOSIT AND INVESTMENT LIMITS STANDARD

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That Article 10, item 11 of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions and its reforms, and Articles 57, item 1, 53, and 54 of Law No. 561, General Law of Banks, Non-Bank Financial Institutions, and Financial Groups; empower the Board of Directors of the Superintendence of Banks and Other Financial Institutions to issue norms related to investments and deposits, as well as the limits for this type of operation in the country and abroad for supervised financial institutions.

II

That it is necessary to reform Article 12 of the Deposit and Investment Limits Standard, in order to update the equivalences of the risk rating agencies' ratings regarding determining the investment grade of local or foreign financial institutions, and sovereign risk level.

In exercise of its powers,

HAS ISSUED

CD-SIBOIF-933-3-MAR15-2016

The following,

NORM REFORMING ARTICLE 12 OF THE DEPOSIT AND INVESTMENT LIMITS STANDARD

FIRST: Article 12 of the Deposit and Investment Limits Standard contained in Resolution No. CD-SIBOIF-650-2-OCT20-2010, of October 20, 2010, published in La Gaceta, Official Journal No. 2 of January 6, 2011, and its reforms, is hereby amended, which shall read as follows:

"Art. 12. Rating Parameters.- For the purpose of determining local or international rating as well as sovereign risk, the ranges established in the following table must be met:

2

Risk Rating Agency	Rating Categories
	Issuer Obligations	Short-term Obligations	Long-term Obligations	Sovereign Risk
Fitch IBCA	Rating BBB- or higher	Rating F3 or higher	Rating BBB- or higher	Rating BBB- or higher
Moody's Investors Services	Rating Baa3 or higher	Rating P-3 or higher	Rating Baa3 or higher	Rating Baa3 or higher
Standard & Poor's Corporation	Rating BBB- or higher	Rating A3 or higher	Rating BBB- or higher	Rating BBB- or higher
Dominion Bond Rating Services Limited	Rating BBB- or higher	Rating A3 or higher	Rating BBB- or higher	Rating BBB- or higher
Centroamerican Rating Society, S.A.	Rating scr-BBB or higher	Rating SCR-4 or higher	Rating scr-BBB or higher
Pacific Credit Rating, S.A. de C.V.	Rating BBB or higher	Rating P-3 or higher	Rating BBB or higher

In the event that there is more than one risk rating, the lowest rating shall apply.
The current rating shall be the one available on the website of the respective rating agency.
For such purposes, the rating must be available to the public on the website of the respective rating agency, as well as on the website of the rated financial institution, on a permanent basis."

SECOND: This norm shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Journal. (f) S. Rosales C. (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandón Argeñal) (f) Antonio Morgan Pérez. Ad Hoc Secretary"

URIEL CERNA BARQUERO

3
Secretary of the Board of Directors SIBOIF