Fitch Ratings has assigned ex-government support or 'xgs' ratings to Banco BOCOM BBM S.A. (Banco BOCOM BBM), Banco Procredit S.A. (Banco Procredit) and Industrial and Commercial Bank of China Limited Panama Branch (ICBC Pan).

Fitch has assigned ex-government support ratings, where an 'xgs' suffix is added to the corresponding existing rating, to banks that are not rated as public-sector policy banks and that have Long-Term Issuer Default Ratings (IDRs) that incorporate assumptions of government support.

This rating action follows the publication of Fitch's Bank Ex-Government Support Ratings Criteria on April 11, 2023. The underlying ratings are unaffected by the rating action. The full list of rating actions is available below.

Key Rating Drivers

The ex-government support ratings exclude assumptions of extraordinary government support from the underlying ratings.

The Foreign Currency (FC) Long-Term IDR (xgs) of the following subsidiary banks has been assigned at the higher of their Viability Ratings (VRs) and the rating obtained by notching from the parent banks' Long-Term IDRs (xgs) in accordance with the shareholder support notching considerations as outlined in the relevant Master Criteria.

Banco BOCOM BBM

Banco ProCredit

Local Currency (LC) LT IDR (xgs) of Banco BOCOM BBM has been assigned in line with the Long-Term IDR (xgs).

Short-Term Foreign and Local Currency IDRs (xgs) have been assigned in accordance with the respective Long-Term Foreign and Local Currency IDRs (xgs) and Fitch's short-term rating mapping, taking into account the respective parents' Short-Term IDRs (xgs).

The ex-government support ratings of ICBC Pan are aligned with ex-government ratings of Industrial and Commercial Bank of China Limited, which reflects its status as a branch of the latter.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

The Long-Term IDRs (xgs) of Banco BOCOM BBM and Banco ProCredit could be downgraded if the respective parent banks' ability or propensity to provide support weakens, as assessed by Fitch. The former could stem from a downgrade of the respective parent bank's Long-Term IDRs (xgs) or from an increase in country risks as assessed by Fitch.

The Long-Term IDR (xgs) of ICBC Pan would be downgraded if the Long-Term IDR (xgs) of Industrial and Commercial Bank of China is downgraded.

Short-term ex-government support ratings are primarily sensitive to changes in the long-term ex-government support ratings and could be downgraded if the latter are downgraded and the new long-term ratings map to lower short-term ratings in accordance with Fitch's criteria.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

An upgrade of the Long-Term IDRs (xgs) of Banco BOCOM BBM would require an upgrade of the parent bank's Long-Term IDR (xgs) and, in case of FC Long-Term IDR (xgs), an upgrade of Brazil's Country Ceiling, provided Fitch's view on the parent bank's ability and propensity to provide support remains otherwise unchanged.

An upgrade of the Long-Term IDR (xgs) of Banco ProCredit, which is constrained by Ecuador's transfer and convertibility risks, would require an upgrade of Ecuador's Country Ceiling, provided Fitch's view on the parent bank's ability and propensity to provide support remains otherwise unchanged.

The Long-Term IDR (xgs) of ICBC Pan would be upgraded if the Long-Term IDR (xgs) of Industrial and Commercial Bank of China is upgraded.

Short-term ex-government support ratings are primarily sensitive to changes in the long-term ex-government support ratings and could be upgraded if the latter are upgraded and the new long-term ratings map to higher short-term ratings in accordance with Fitch's criteria.

Best/Worst Case Rating Scenario

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Public Ratings with Credit Linkage to other ratings

The ratings of Banco BOCOM BBM, S.A. are driven by the ratings of Bank of Communications Co, Ltd.

The ratings of Banco ProCredit, S.A. are driven by the ratings of ProCredit Holding AG & Co. KGaA

The ratings of ICBC Pan are derived from the ratings of its head office Industrial and Commercial Bank of China Limited.

ESG CONSIDERATIONS

ESG considerations have remained unchanged since the last rating review. Please refer to the corresponding latest Rating Action Commentary published on www.fitchratings.com for the ESG Relevance Scores. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

RATING ACTIONS

Entity / Debt

Rating

Banco BOCOM BBM S.A.

LT IDR (xgs)

BB(xgs)

New Rating

LC ST IDR (xgs)

B(xgs)

New Rating

LC LT IDR (xgs)

BB(xgs)

New Rating

ST IDR (xgs)

B(xgs)

New Rating

Industrial and Commercial Bank of China Limited, Panama Branch

LT IDR (xgs)

BBB(xgs)

New Rating

ST IDR (xgs)

F3(xgs)

New Rating

Banco ProCredit S.A.

LT IDR (xgs)

B-(xgs)

New Rating

ST IDR (xgs)

B(xgs)

New Rating

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VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

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