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Fitch places Bancolombia, subsidiaries on Rating Watch Negative

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.