And the “losers” are Banco Cacique and Banco Pecunia, both fully controlled by french bank Societe Generale (SocGen).

Fitch downgraded both banks from“b +” to “b-. Fitch noted that the downgrade reflects its view of weak performance and significant losses by the banks in 3Q, as well as the agency’s expectation that the earnings results for short to medium term will be modest “in the best case scenario. According to the ratings agency, these weaknesses may require “the need for future capital injections by SocGen.”

Fitch also warns on further downgrades if the performance indicators get worse and if default rates increase.

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