Fitch has assigned first-time international ratings to BBVA Colombia, the local unit of Spanish banking group BBVA (NYSE: BBVA), including a BBB- long-term foreign currency issuer default rating (IDR) with a positive outlook, a press release from the ratings agency reads.
The ratings reflect the parent company's support, the unit's resilient margins, improving profitability and asset quality, adequate reserves, low loan concentration and relative efficiency. The bank's IDRs have a positive outlook, in line with Colombia's sovereign rating.
BBVA Colombia's IDRs could be upgraded if Colombia's sovereign rating and country ceiling is upgraded, the agency noted, adding that its individual rating could be pressured by asset quality deterioration, or performance that erodes capital and reserves.
To read the full press release, in English, go to this link