Buenos Aires, June 15, 2012 -- Moody's Investors Service has today downgraded the standalone bank financial strength ratings (BFSRs) of two Bolivian banks -- Banco Mercantil S.A and Banco Solidario S.A., to D- from D, which maps to a baseline credit assessment (BCA) of ba3 on the long-term scale. At the same time, Moody's has confirmed the standalone BSFRs of four Bolivian banks -- Banco Bisa S.A ., Banco Nacional de Bolivia S.A., Banco Los Andes Procredit S.A., and Banco de Crédito de Bolivia S.A. -- at D-, which maps to a BCA of ba3.

Today's rating actions conclude the review Moody's initiated on 15 March 2012 in the context of its ongoing global review of all banks whose standalone assessments are higher than the rating of the country in which they are domiciled, as discussed in the rating implementation guidance "How Sovereign Credit Quality May Affect Other Ratings," published 13 February 2012, and in the special comment "Banks and Sovereigns: Risk Correlations Constrain Standalone Bank Credit Assessments," published 30 April 2012.

Please see http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_143214 for the full list of affected issuers and their credit ratings.

Moody's has also reassessed its assumptions about the probability of government support for Bolivian banks in light of the declining financial dollarization of the country's banking system. As a result of this reassessment, the rating agency has upgraded the local currency deposit ratings of six banks and one leasing company by one notch, and has confirmed the local currency deposit ratings of four banks.

In addition, Moody's has upgraded the foreign currency deposit ratings of 11 banks and one leasing company, to B1 from B2, following the recent upgrade of the foreign currency deposit ceiling for Bolivia to B1 from B2. For further detail on the sovereign action, please see Moody's press release, "Moody's Upgrades Bolivia to Ba3 and Assigns a Stable Outlook," published 8 June 2012.

Finally, Moody's has upgraded the national scale deposit and debt ratings in local and foreign currency of six Bolivian banks and one leasing company by one notch.

All the revised ratings carry a stable outlook.

RATINGS RATIONALE

DOWNGRADE OF STANDALONE RATINGS TO THE SOVEREIGN DEBT RATING LEVEL

The downgrade of the standalone ratings of Banco Mercantil and Banco Solidario reflects Moody's assessment that these banks' creditworthiness is highly correlated with the credit strength of the Bolivian government, taking into account (i) the extent to which their businesses depend on the domestic macroeconomic and financial environment and (ii) their lack of cross-border diversification.

Our review indicated that there are few, if any, reasons to believe that these banks would be insulated from a government debt crisis because they are primarily domestic institutions with macroeconomic exposures similar to those of the sovereign government, even though they have only moderate exposure to domestic sovereign debt.

CONFIRMATION OF STANDALONE RATINGS

In confirming the standalone ratings of Banco Bisa, Banco Nacional de Bolivia, Banco Los Andes Procredit and Banco de Crédito de Bolivia, Moody's took into account the recent upgrade of the Bolivian government's debt rating, to Ba3 from B1. As a result of the action on the sovereign, the D- standalone BSFRs and ba3 BCAs of these banks remain unchanged, and are now aligned with the government rating, reflecting Moody's opinion that their creditworthiness is highly correlated with the government's credit strength because of their primarily domestic businesses and lack of cross-border diversification.

LOCAL CURRENCY DEPOSIT AND DEBT RATINGS

Moody's deposit ratings incorporate assumptions about potential external support from a parent institution, or regional or national government. These assumptions reflect both the capacity and the willingness of such a third party to support a bank in the event of stress.

The declining dollarization of Bolivian banks' assets and liabilities over the past several years has led Moody's to reassess its assumptions about the probability of government support that can be incorporated into the banks' deposit ratings, with the degree of uplift from such assumptions depending on a bank's systemic importance as a deposit-taker and lender.

The deposit and debt ratings of the six banks whose standalone profiles are now positioned at the same level as the sovereign rating continue to benefit from one notch of uplift due to government and parental support assumptions. The deposit and debt ratings of other four banks also benefit from one notch of uplift, in this case due to government support assumptions, given the banks' systemic importance.

FOREIGN CURRENCY DEPOSITS AND DEBT RATINGS

The recent upgrade of Bolivia's country ceiling for foreign currency bank deposits, to B1 from B2, and for foreign currency bonds, to Ba2 from Ba3, has led to the upgrade of the foreign currency deposit ratings of 11 banks and one leasing company by one notch, and to the upgrade of the foreign currency debt ratings of eight banks, also by one notch.

NATIONAL SCALE RATINGS

The upgrade of the global local currency deposit and issuer ratings of five banks has led to the upgrade of their deposit ratings on the Bolivian national scale by one notch. The national scale debt ratings of three banks have also been upgraded by one notch.

Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in March 2011 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings".

WHAT COULD MOVE THE RATINGS UP/DOWN

As the key drivers of today's actions are largely structural in nature, upward rating pressure is unlikely in the near term. Beyond the foreseeable future, a combination of an improving operating environment and an improvement in the credit risk profile of the national government could positively influence Bolivian banks' ratings. Conversely, a deterioration in the banks' operating environment and/or a weakening of their standalone financial fundamentals could exert downward pressure on the ratings.

WHICH BANKS AND RATINGS ARE AFFECTED

BANCO MERCANTIL S.A.

Bank Financial Strength Rating (BFSR) downgraded to D-, from D, now mapping to a ba3 standalone credit assessment from ba2

Long-term global local currency deposit rating confirmed at Ba2

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO SOLIDARIO S.A.

Bank Financial Strength Rating (BFSR) downgraded to D-, from D, now mapping to a ba3 standalone credit assessment from ba2

Long-term global local currency deposit rating confirmed at Ba2

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO BISA S.A.

Bank Financial Strength Rating (BFSR) and standalone credit assessment confirmed at D-/ ba3

Long-term global local currency deposit rating upgraded to Ba2, from Ba3

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale local currency deposit ratings upgraded to Aaa.bo, from Aa1.bo

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BISA LEASING S.A.

Long-term global local currency issuer rating upgraded to Ba2, from Ba3

Long-term foreign currency issuer rating upgraded to Ba2, from Ba3

National Scale local currency issuer rating upgraded to Aaa.bo, from Aa1.bo

National Scale foreign currency issuer rating upgraded to Aaa.bo, from Aa1.bo

Long-term foreign currency debt rating upgraded to Ba2, from Ba3

National scale foreign currency debt rating upgraded to Aaa.bo, from Aa1.bo

BANCO NACIONAL DE BOLIVIA S.A.

Bank Financial Strength Rating (BFSR) and standalone credit assessment confirmed at D-/ ba3

Long and short-term global local currency deposit rating upgraded to Ba2, from Ba3

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

Long-term foreign currency subordinated debt ratings upgraded to Ba3, from B1

National Scale foreign currency subordinated debt ratings upgraded to Aa1.bo, from Aa2.bo

BANCO DE CREDITO DE BOLIVIA S.A.

Bank Financial Strength Rating (BFSR) and standalone credit assessment confirmed at D-/ ba3

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO LOS ANDES PROCREDIT S.A.

Bank Financial Strength Rating (BFSR) and standalone credit assessment confirmed at D-/ ba3

Long-term and short-term global local currency deposit rating confirmed at Ba3/ Not Prime

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO ECONOMICO S.A.

Long-term global local currency deposit rating upgraded to Ba3, from B1

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale local currency deposit ratings upgraded to Aa1.bo, from Aa2.bo

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

Long-term foreign currency subordinated debt rating upgraded to B1, from B2

National Scale foreign currency subordinated debt ratings upgraded to Aa2.bo, from Aa3.bo

BANCO FIE S.A.

Long-term global local currency deposit rating upgraded to Ba3, from B1

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale local currency deposit ratings upgraded to Aa1.bo, from Aa2.bo

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

Long-term local currency debt rating upgraded to Ba3, from B1

National Scale local currency debt ratings upgraded to Aa1.bo, from Aa2.bo

BANCO GANADERO S.A.

Long-term global local currency deposit rating upgraded to Ba3, from B1

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale local currency deposit ratings upgraded to Aa1.bo, from Aa2.bo

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

Long-term local currency subordinated debt rating upgraded to B1, from B2

Long-term foreign currency subordinated debt rating upgraded to B1, from B2

National Scale local currency subordinated debt ratings upgraded to Aa2.bo, from Aa3.bo

National Scale foreign currency subordinated debt ratings upgraded to Aa2.bo, from Aa3.bo

BANCO UNION S.A.

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO DO BRASIL S.A.

Long-term foreign-currency deposit ratings upgraded to B1, from B2 remain constrained by Bolivia's foreign currency deposit ceiling at B1

National Scale foreign currency deposit ratings upgraded to Aa2.bo, from Aa3.bo

BANCO DE DESAROLLO PRODUCTIVO S.A.M.

Long-term local currency issuer rating upgraded to Ba3, from B1

National Scale local currency issuer rating upgraded to Aa1.bo, from Aa2.bo

Long-term local currency debt rating upgraded to Ba3, from B1

National scale local currency debt rating upgraded to Aa1.bo, from Aa2.bo

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

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