Fitch Ratings on July 6 affirmed Financiera Finca Nicaragua SA's long- and short-term nationalratings at BBB+(nic) and F2(nic), respectively, with a stable outlook on the long-termrating.

The company's ratings incorporate its membership with the U.S.-basedNGO Finca International, which is focused on financing micro enterprises, Fitchsaid. The ratings action also reflected its strategy shared with its parent company,as well as its high level of management integration, permanent technical support,access to funding and business transfer experience.

Fitch also highlighted the company's improved financial performance,good credit quality and pressured capitalization.

"[The company's] moderate profitability recorded improvements.In Fitch's view, profitability will continue to be sensitive to its credit qualityas it is limited by loan loss provisions and efficiency, although the metrics recordedimprovements," Fitch noted.

Meanwhile, the company's capital levels point to a downward trendsince assets have increased more than internal capital generation, the rating agencynoted.