Ratings roundup: Bancolombia, Banco Nacional de Bolivia, Banco Paris

Tuesday, July 5, 2011

Fitch has upgraded Bancolombia's (NYSE: CIB) outlook to positive from stable and its support floor to BB+ from BB, while also affirming all of the bank's ratings.

The bank's support floor was upgraded to reflect Colombia's improved credit standing, which was recently upgraded to BBB-/BBB by Fitch, the agency said in a report.

The bank's individual and issuer default ratings (IDRs) reflect its strong franchise, solid earnings generation, ample deposit and customer base, diversified loan portfolio and revenues, sound asset quality, adequate reserve coverage, and sound liquidity and capital.

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Bancolombia is the country's biggest bank, with about 20% of the Colombian banking system's assets as of March 2011. It also owns El Salvador's largest bank, Banagrícola.

To read the full report, in English, go to this link


Fitch has affirmed Banco Nacional de Bolivia's long and short-term foreign and local currency ratings at AAA and F1+, respectively, on the national scale.

The ratings reflect BNB's solid financial profile and healthy revenue generation, which is underpinned by adequate loan diversification and limited asset risk profile. The agency also took into consideration the bank's strong market positioning, as well as its solid franchise.

BNB is Bolivia's second largest private bank, commanding a 13.3% asset market share as of end-March. It was founded in 1872 and is controlled by the local Bedoya family.

To read the full report, in Spanish, go to this link


Fitch has affirmed Chilean consumer loan-oriented bank Banco Paris' long and short-term deposit ratings at A and N1,respectively, on a national scale.

Banco Paris' ratings reflect support from its parent company - Chile's second biggest retailer, Cencosud, which Fitch rates BBB-.

The bank's rating is constrained by its relative small size and concentrated focus on a market niche that is highly sensitive to the country's economic scenario, the agency said in a report.

To read the full report, in Spanish, go to this link