Fitch Sees Little Subprime Exposures in Latin American Banks, Insurers

A poll, conducted by Fitch Ratings, indicates that the banks and insurance companies it rates in the Latin America Region as to the extent they may hold direct or indirect exposure to U.S. subprime backed structured securities, found that “exposure is minimal or non-existent.”

Fitch said the “in the isolated cases where exposures to subprime paper exist, the exposure is minimal and will not by itself lead to negative rating actions.

“The review included rated banks and insurance companies in the following countries: Argentina, Brazil, Colombia, Costa Rica, Chile, Dominican Republic, Ecuador, El Salvador, Jamaica, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Trinidad, Uruguay, Venezuela and some supranational entities covered by Fitch.”

Source: Fitch – www.fitchratings.com