Fitch Ratingson April 28 placed certain international scale ratings of Bancolombia SA and some of its subsidiaries on Rating WatchNegative, including its long-term foreign currency issuer default rating of BBB+.
The placementfollows the release of Bancolombia's latest financial reports showing underperformingcapital metrics.
Affected subsidiariesinclude Bancolombia Panamá SA,Bancolombia Puerto Rico InternacionalInc. and Banistmo SA.
A significantdepreciation of Colombia's currency prompted Fitch to perform a full review of thebank's capital adequacy metrics, which could lead to a possible downgrade of itsratings.
"While[we] expected a slight decline in Bancolombia's capital ratios due to continuedgrowth, the reported ratio declined more than originally expected," Fitch said.However, the bank could post a recovery in its capital ratios through slower growthplans and sustained capital generation, Fitch noted.