Moody's upgrades the Global Bank Corporation - Panama Covered Bond

Panama Business. Moody's Investors Service upgraded the rating for Global Bank Corporation -- Panama Covered Bond Program to Baa2 from Baa3. This action concludes Moody's review initiated on 17 March 2015, when it placed the rating under review for upgrade.

The rating action follows the assignment of a Counterparty Risk (CR) Assessment to Global Bank Corporation of Baa3(cr). The action has also taken into account the rating constraints for the covered bond program imposed by the country ceilings and timely payment indicator (TPI) framework.

Moody's has changed its reference point --the covered bond (CB) anchor -- for determining the probability that an issuer will cease making payments under a covered bond, before any recourse to the covered bond collateral. Under the updated methodology, Moody's will now use financial institutions' CR Assessments as the reference point for the CB anchor.